Madina is the group leader (she is located in the center of the group, wearing a black and yellow wrap with her face showing.) This group is called by her name. She is aged 57, married, and the mother of seven adult children. Her business is selling clothes, which has been her sole source of income for over ten years. She began this activity as a result of the lack of a clothes market in her neighborhood.
She is very grateful to her neighbors who supported her over all these years. With the income from her business she has been able to upgrade her home and enjoy more comfort.
At the present time, her business doesn't get her a lot of profit due to the bad situation in Yemen. So she applied for the loan of 50,000 YER from AMB to acquire articles of clothing such as dresses, shirts, pants, skirts, shoes, etc. to sell to her customers thus giving her the opportunity to improve her income from her business.
In the future she would like to buy a house with a store in it in order to expand her activity.
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
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.
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Success!! The loan was 100% repaid