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Al-Wafa Group
In this Group: Wahba, Samia, Kalthom, Nahd
Al-Wafa Group consists of four women from Aden, Yemen. They are applying for a 230,000 YER loan through Al-Amal to buy women's clothes to sell. The loan will be split among them.


Klthom, fifty, is a member of this group. She knows how to read and write. Her husband works very hard and does his best to provide his family with food and clothing, but unfortunately the money he makes is really not enough to support the family adequately.


Ten years ago, Klthom decided to help her husband with the family’s finances. In the beginning she started going door to door selling products that only earned her a small income. Then she started selling clothes.


Now that Klthom has enough experience selling clothes, she intends to have her own independent business selling them. For this reason she will receive a 70,000 YER portion of the loan. She hopes that she will make a profit selling a lot of clothes to new clients in different quarters and places in her city.

Additional Information

More information about this loan

This loan is governed by Islamic lending principles. Because Islamic Law prohibits the charging of interest, Al-Amal is charging 0% interest on this loan. This is a Murabaha loan, which means that Al-Amal purchases goods for borrowers and charges a fee or mark-up. Click here to learn more about this loan type and Kiva's approach to lending in the Islamic world.   

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.

About Yemen

  • $3,900
    Average annual income
  • 0
    View loans »
    Yemen Loans Fundraising
  • $3,225,150
    Funds lent in using Kiva
  • 215.1
    Yemen Rials (YER) = $1 USD

Success!! The loan was 100% repaid

A portion of Al-Wafa Group's $1,075 loan helped a member to buy women's clothes for her business.
100% repaid
Repayment Term
14 months (Additional Information)
Repayment Schedule
Monthly
Pre-Disbursed:
Jun 1, 2013
Listed
Jun 13, 2013
Currency Exchange Loss:
Possible
Ended:
Jul 17, 2014