Mohammed is a 49-year-old man who lives in Sana'a ,Yemen. He is a father of seven sons and four daughters. He is a distributor who sells and distributes different sweets. He is not literate but has 20 years of experience in this field.
Mohammed started his business by opening a small sweets bakery with a small amount of capital. As his business was small and there was no other bakery in the area, he attracted customers by making tasty sweets for them. He distributes his goods to many different groceries with a wheelbarrow. He not only uses his business as a source of income but for social purposes such as helping the poor by providing his sweets, especially during festivals and weddings seasons. Recently, Mohammed's business has decreased leading to a decrease in his profits. He has had to stop providing sweets for poor people because of the current bad situation which Yemen faces.
Mohammed is requesting a loan of 300,000 YER from Kiva partner AMB in order to purchase materials for his business. In this way he hopes to increase his profits and continue providing sweets at social occasions. In the future, Mohammed plans to open a big sweet factory in order to distribute his goods around Yemen's provinces. He would also like to buy a new lorry to use instead of his wheelbarrow.
About Al-Amal Microfinance Bank
Al-Amal reaches out to low-income micro-entrepreneurs and small business owners in Yemen with a suite of credit, savings, and insurance products tailored for Muslim borrowers. Before lending through Al-Amal, please consider the following:
1) Due to ongoing security concerns, full due-diligence of Al-Amal was conducted remotely rather than on-site. This makes Al-Amal atypical among Kiva's Field Partners, as Kiva staff have not conducted an on-site assessment. Al-Amal's assessment included in-person meetings with the top management in other, more secure locations in the Middle East.
2) Because Yemen is a new and unstable environment, there is a possibility that future loan repayments could be held indefinitely in the country for regulatory reasons, even if individual borrowers pay back their loans. As a lender to borrowers in Yemen, you accept this additional risk.
Additionally, all of Al-Amal's products are Sharia compliant and customized for its Muslim clients. Most of the loans are structured as Murabaha interest free loans. Al-Amal purchases goods for its borrowers and charges them a markup or fee. Al-Amal is also experimenting with Ijarah loans (an Islamic leasing product). For more information on Islamic microfinance, please click here.