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Aref
Aref is a 35-year-old married man with three children living with him in Taiz, Yemen. Although Aref has a university certificate, he couldn’t find a job because of Yemen's economic situation where the unemployment rate increases day after day. Aref decided not to wait for years to get a job either in the public or private sector. Instead, he worked very hard in order to begin his own business. At first, he collected used metal materials and resold them to the metal factory for eight years. Year by year, he improved his business and opened a small construction supplies store. Over time, the store has become bigger and bigger. Now, he is earning a good profit, but it is really not enough to purchase more construction supplies. Most of what he earns goes to the rent for the store and the rest goes to the expenses of his family. Therefore, Aref applied for a loan of 500,000 YER from AMB in order to expand his store.

Aref looks forward to increasing his capital and becoming a wholesale dealer. His dreams are to provide his family with a better future and send his children to a private school to receive a better education.

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.

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About Yemen

  • $2,700
    Average annual income
  • 29
    View loans »
    Yemen Loans Fundraising
  • $3,141,950
    Funds lent in using Kiva
  • 214.8
    Yemen Rials (YER) = $1 USD
Paying Back

This loan has been fully funded!

A loan of $2,350 helped Aref to buy construction supplies to expand his business.
75% repaid
Repayment Term
15 months (Additional Information)
Repayment Schedule
Monthly
Pre-Disbursed:
Mar 20, 2014
Listed
Mar 29, 2014
Currency Exchange Loss:
Possible