Mohammed is 42 years old, a married man who has three children who live together in Taiz, Yemen. He started his business by buying a small Xerox machine then he opened a small bookshop. He has lots of time to dedicate to his business and many people prefer his business because he is honest and hard-working. He has many ideas for his business that he’s been implementing little by little. He’s been able to keep his business active for many years.
Mohammed is a very dignified, confident man and his customers give him good references. Lately, Mohammed has been thinking about stocking his store with a bigger variety of products in order to attract more customers and fill demands. This idea was the impetus to request a loan of 100,000 YER from AMB to buy a variety of products like document paper, books and other articles that would bring in customers. He hopes to have big stationery shop thus improving his family’s quality of life.
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.