Saleh is 53, a married man, and lives with his 10 children. Almost all of them are adults. He is still responsible for the family’s financial situation. For this reason he has set up a small grocery shop where he sells basic grains, eggs, sweets, candies, soft drinks and other items.
Due to the family’s financial difficulties, he has decided to ask for this loan of 200,000 YER from AMB which will allow him to buy merchandise such as drinks, sweets, oil, rice, sugar and other items which will be attractive to his customers. This way he will increase his sales and monthly income so that he can cover his family’s food, housing and educational expenses.
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.