Mohammed, 51 years old, is a married man and a father of 10 children. He lives in a small, rented house. Mohammed is regarded as a symbol of industry and hard work. He started his career more than 30 years ago as an ordinary simple worker with very big ambitions. Currently, Mohammed has two dump trucks and a front loader. He is about to finish building his own house.
More than 30 years ago when he got married and had children, he realized that he had a big responsibility to take care of his family and cover all their living needs. Such responsibility drove him to have big dreams and goals. After working for a few years as a worker with a building contractor, he was able to accumulate some money and buy a dump truck with the financial assistance of one of his friends, since he couldn't afford to purchase it himself. He used this dump truck to take sand, gravel and other building materials to construction sites. Such business was very profitable. After some years, he was able to give back his friend's money and became the only owner of the truck. Year after year, Mohammed was able to buy two dump trucks and a front loader. Such achievement is not the result of luck and fortune but rather the outcome of hard work and faith. Currently, Mohammed has about 10,000,000 YR and he wants to buy another big and better dump truck, which costs 13,000,000 YR. Though he doesn’t have enough money, he is determined to purchase it. Therefore, he has requested a loan of 3,000,000 YR from Al-Amal Microfinance Bank.
After purchasing this truck, Mohammed is planning to start selling building materials instead of just taking them to construction sites since now he has all the required vehicles: a front loader and a dump track. He is intending to achieve such an aim as soon as he finishes repaying all the installments. He is sure that such an aim will open new horizons for him in the future.
More information about this loan
This loan is part of Al Amal's program for small and medium sized businesses. It is designed to provide first-time funding to entrepreneurs and promote job creation. In addition to credit, borrowers receive relevant training.
In Yemen, where youth unemployment is as high as 55%, even among college graduates, employment opportunities are critical. However, newer businesses that could create jobs are often excluded from the formal financial system because they are considered to be too risky. It's estimated that every $500 lent to one of these startup enterprises creates 1.2 jobs. By funding this loan, you are supporting the growth of businesses that would otherwise not have access to capital or the opportunity to employ others.
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.