The group has taken out a loan of 150,000 Yemeni rials through group lending, which the Al-Amal Microfinance Bank offers to women who cannot provide guarantees. The group leader, Haya, who is 36 years old, acquired her dressmaking skills long ago. Her main business is sewing and, due to her good reputation, she has a woman to help her with her sewing. When her clients are getting married or having a party, they come to her to sew their gowns.
Haya will use her portion of the loan to purchase textiles, dresses and other basic materials needed for sewing. In the future, she plans to open a big tailoring shop to increase her profits.
About Al-Amal Microfinance BankAl-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
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Success!! The loan was 100% repaid