To expand their business, the group members decided to request a loan of 150,000 Yemeni Rial (YER) from AMB.
Amna is 45 years old (she is in the middle of the photo) and the leader of this group. She is a married woman and has six children, three of whom are adults. They are her reason and motivation to do well in life. She lives in Aden.
Amna has been running incense for twenty years. She started this business due to acquiring her work from her mother who previously made incense.
With her family's encouragement in order to support them with their household expenses, she started work building the business back up. She gradually grew the business and increased the variety of products she sold. She is famous in the incense industry.
She would like to expand her business in order to meet her clients' needs. She requested a loan of 50,000 YER from AMB to invest in buying supplies for her business like perfumes, sugar and other items that will be used to make incense to sell.
In the future, she would like to expand her business by distributing incense around her area and cities in her country.
About Al-Amal Microfinance BankAl-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.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.
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Success!! The loan was 100% repaid