Tawfiq is a 31-year-old married man and father of one child who lives in Taiz, Yemen. He worked hard in a small company to save enough to establish a grocery store. He did this in order to generate enough income to support his household expenses. This business is Tawfiq’s source of income so that he is able to give his family a better quality of life. With the thought of generating more income and being able to offer his customers a greater variety of products, he wants to increase the stock of products that he has. However, he does not have enough capital to be able to buy the products from his providers. He therefore requested a loan of 150,000 YER from AMB that will give him the opportunity to buy food staples in order to stock his store and offer his customers a greater variety. He hopes that with the loan he will be able to increase his sales because he will be offering his customers more products. In the future, Tawfiq dreams of his business growing and being able to set up a supermarket so that his children can enjoy financial stability.
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.