Abdullah is 35 years old, a married man who has six children, three of them in school. To make a living, he owns & operates a bookstore. The main source of income for the business comes from selling a variety of different products in the local community. He has been in this business for over 10 years.
He started his business with limited capital with which he purchased a plot of land in his area, then he worked hard to look after his young brothers. He gained access to financial services to help improve his living situation and ability to improve business activities.
He is very friendly and has already gained some permanent customers. He helps himself by bringing in new goods from another city such as stereos, cosmetics, and perfumes. Due to the current bad situation which Yemen has met, however, his business has had lower profits and fewer customers. So, he requested a loan of 200,000 YER from AMB to buy additional inventory & use as working capital for books, toys, and cosmetics so that will increase his sales since this type of product is very popular.
He plans to use the additional revenue generated from the business to supplement the family's income as well as his dream to see his brothers get married.
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.