Sabiha is a 56-year-old, Iraqi woman. She is married and a mother of three children. With limited career options due to cultural restrictions and domestic constraints, Sabiha is one of the many Iraqi woman who are working from home. She uses her sewing skills to generate some income and participate in meeting the financial needs of her family.
Sabiha has seven years' experience with the small, home-based sewing and tailoring activity, making custom-order dresses for women and children and also small, fabric, household items.
She would like to improve her work conditions and renew her work area to offer a better atmosphere for her customers and to have a better work experience for herself. To be able to pay for the improvements, she took a loan in the amount of USD 2,000 from Relief International Microfinance Iraq.
Based on the political and social challenges of lending in Iraq, personally identifiable information about this borrower has been altered for her protection. Relief International Microfinance Iraq appreciates Kiva lenders' consideration of these challenges and encourages lenders to continue their support for Iraqi borrowers.
About Relief International Iraq
Relief International (RI) is a non-profit non-sectarian organization with a multifaceted approach to working in post-conflict, vulnerable and transitional countries. As part of its core mission to bridge emergency relief with long-term development though sustainable, enterprise-oriented solutions, RI directs a broad microfinance portfolio in the Middle East and South Asia. In Iraq, RI microfinance has been providing access to capital for micro, small and medium enterprises since 2006. When lending through RI, there are several points to consider:
1. RI-Iraq offers loans that are customized for borrowers in Iraq, a predominantly Muslim country. A key principle of Islam is the prohibition of charging interest on a loan. This prohibition is based on the belief that money is only a medium of exchange and has no value in itself. In order to offer loans in a manner consistent with borrowers' values, RI-Iraq charges 0% interest on this loan. However, RI-Iraq does charge a servicing fee to cover its costs. The loan amount you see listed on Kiva 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 according to this loan’s repayment schedule. For more information on lending in the Muslim world, please click here.
2. Because of on-going security concerns, due diligence on RI-Iraq was conducted remotely, rather than in-person as is typical with most Kiva Field Partners. RI-Iraq does, however, meet all of the other minimum criteria required by Kiva's full due diligence.
3. One of the challenges of lending to entrepreneurs in Iraq is the increased chance of difficulty transferring funds between the United States, where Kiva is based, and Iraq. While Kiva has been able to send and receive funds to and from Iraq in the past, there is a chance that we may encounter problems doing so in the future. This could result in difficulty repaying loan funds to lenders, even if individual borrowers have paid back their loans. As a lender to borrowers in Iraq, you would be taking on this additional risk.