Al- Hanan Group
Shaklia is a very active woman from a poor family. She is 35 years old and a mother of five children. She is the leader of the group. Her husband is the sole breadwinner of the family. Over time, he became unable to look after his family. Shaklia wanted to help him in this responsibility. She started selling women's clothes as a door to door, using a small amount of capital, five years ago. Her income from this business is very low, and she wanted to improve it.
Most of what Shaklia earns goes towards the expenses of her family. On the other hand, she wants to improve her business. For this reason, she asked for a loan of 70,000 YER from AMB in order to purchase more women's clothes for resale to her customers.
Shaklia looks forward to expanding her business further through opening a small store selling women clothes.
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 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