Mohammed is a 32-year-old married man and the father of three children. He lives in Sana'a, Yemen. His educational background is primary school only. His business is a cafeteria, which he has been running for seven years. He offers his customers all types of staple products, such as hot drinks, fresh juices and sandwiches. In addition, he has employed two workers in his business.
He started as a worker in the same business. Then he strived to collect more money in order to buy the business. The business allows him to support his family. Mohammed says that he is already established with customers in the area and highly esteemed by his neighbors and customers, who consider him a responsible man. He has been able to attract his clients because he makes all types of delicious foods and tasty juices.
Mohammed wants to acquire more products with which he can grow his business in order to achieve his objective. So he applied for a loan of 120,000 YER from AMB to buy food items such as beans, sugar, cheese, eggs and fruits
In the future, Mohammed would like to send his children to high school as well as open a new cafeteria in a strategic place.
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.