Mohammed is a 26-year-old married man who lives in Sana`a, Yemen. He has a mill ("tahoun") and has been involved in purchasing grains then selling them to his customers after milling. He started his business because it has fast sales in the market and is attractive to business partners. He works at the business from 7:00 am until 7:30 pm, 7 days per week. He is an incredibly hard-working man and as a result has a lot of experience. In addition, it is the only main source of his income. On the other hand, through lots of effort, he has managed to grind his customer`s grain, i.e., he provides them a service to put food on the table. Recently, he says that the main challenge to his business is a seasonal problem: during the dry season this type of product is very expensive.
So, Mohammed took out a loan of 150,000 YER from AMB in order to purchase grain for his business. He hopes that the extra income from this loan will allow him to improve his standard of living.
In the future, he would like to expand his business to have a extra mill store because his region is lacking some services which he could supply to solve people's needs.
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.