This group is called Al-Tayb. It is made up of four women: Najat, Lamis, Nathal, and Hanan, who are neighbors from Taiz, Yemen. They are hardworking women. They are taking out a loan of 180,000 YER. Najat is the group leader (she is the woman who wears glasses). She is 48 years old and married. She is a very efficient woman, because she likes to work and thus, help her family. She has two children who are all studying. She hopes that all her children will be able to finish their studies. Her business sells incenses and perfumes, and this has been her sole source of income for more than four years. She started her business when her husband's salary was insufficient to cover their family's expenses. She says her business is going very well, her loan has helped her, and she is very satisfied with the support provided. So, she has applied for a loan of 60,000 YER from AMB to buy incenses and perfumes, etc. to sell to her customers, thus giving her the opportunity to improve the income from her business. In the future, she would like to expand her business activities.
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.
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.