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Ramadana Al- Hodeidah Group
In this Group: Shrok, Fatima, Ramadana, Joma
This group is called Ramadana Al- Hodeidah. It consists of four ladies who live in Hodeidah, Yemen. They applied for a loan of 160,000 YER from AMB.

Ramadana is a hardworking woman. She is a 43-year-old widow and a mother of six children. Her oldest child is 19 years old and the youngest one is nine years old. She is the leader of the group.

Ramadana started her business of sewing and selling women clothes door-to-door many years ago. After her husband passed away several years ago, Ramadana assumed the sole responsibility of caring for her children. She started her business with a small amount of capital. Year by year, her business improves, but most of what she earns from profits go to the expenses of the family.

She has good experience in the business. Thanks to experience, she deals with her own business with ease. Unfortunately, the income of this business is not enough to cover all the expenses of the family, and she wants to improve her business further. For this reason, she applied for a loan of 50,000 YER from AMB in order to purchase more sewing materials, such as fabric, thread, buttons and zippers, in order to sew clothes and sell in her area.
She looks forward to expanding her business by opening a large store for sewing clothes and selling them. She hopes to purchase more dressmaking machines to increase her business even more.

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.

This is a Group Loan

In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.

Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.

Tags

About Yemen

  • $2,700
    Average annual income
  • 0
    View loans »
    Yemen Loans Fundraising
  • $3,225,150
    Funds lent in using Kiva
  • 214.8
    Yemen Rials (YER) = $1 USD
Paying Back

This loan has been fully funded!

A portion of Ramadana Al- Hodeidah Group's $750 loan helped a member to purchase more tailoring material, such as thread, buttons, zippers and fabric, in order to sew clothes and sell in her area.
83% repaid
Repayment Term
14 months (Additional Information)
Repayment Schedule
Monthly
Pre-Disbursed:
Jul 3, 2014
Listed
Jul 29, 2014
Currency Exchange Loss:
Possible