Mohammed is a 64-year-old married man from Ibb, Yemen and the father of 13 children. The eldest child is 27 years old. Though he is uneducated, he was aware of the importance of education and enrolled all the members of his family in schools and universities.
Mohammed is a symbol of industry and hardwork. Since he was young, he was responsible for himself. His story started when he immigrated to Saudi Arabia to work, but his journey ended after some years when he was forced to come back to Yemen during the Gulf War in 1990. This was a critical point in his life. Mohammed didn’t surrender and decided to cultivate his own piece of land in the village and secure a decent life for himself and his big family. Year after year, he was able to accumulate a good amount of money to purchase his own house and dump truck to diversify his income sources. He uses this truck to transport loose materials such as sand and gravel to construction sites. This business is profitable, especially because there are not many dump trucks in the city to cover the increasing demand; Therefore Mohammed decided to buy another dump truck. The problem is that he doesn’t have enough money, so he applied for a loan in the amount of 1,500,000 YER from Al-Amal Microfinance Bank. Mohammed is sure that purchasing another truck will increase his income and he will be able to successfully repay the loan and pay for his children's marriages in the near future.
Mohammed looks forwards to purchasing another bigger and better dump truck and will encourage his children to work on the other two trucks to cover their expenses and become independent.
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.