Mohammad is a 23-year-old man; he lives in Khanyounis city in Gaza located in Palestine. Mohammad has a grocery store, which is his only source of income. He wants to purchase more groceries to sell, but the amount of money he has isn't sufficient, so he needs to take a loan from FATEN. When Mohammad gets his FATEN loan, which is repaid on a monthly basis, he will be able to purchase inventory for the store, and will have more groceries to sell. That will increase his income and improve his living conditions. Mohammad is photographed in his grocery store.
About this loan product:
FATEN offers loan products that are designed to serve borrowers all over Palestine, including some religiously conservative areas. A key tenet of Islam is the prohibition of interest in the lending or accepting of money. This prohibition is based on the belief that money should be seen only as a medium of exchange and that it has no value in itself.
FATEN has adapted the terms of this loan to fit the cultural context by attaching a 0% interest rate to the loan. In order to cover its costs, FATEN does charge a servicing fee. The amount you see fundraising includes both the principal loan and the loan servicing fees. As with all Kiva loans, you should expect to have your funds returned to you in accordance with the repayment schedule attached to this loan.
For more information on lending in the Muslim world, please visit Kiva's article on Lending in the Muslim World.
Palestinians face unique challenges due to the economic and political environment in the West Bank and Gaza. Click here to learn more about how Kiva and FATEN are working to help Palestinian borrowers overcome these obstacles and how your support can make a difference.