Rahaf Al- Hodeidah Group
Samira is a 42-year-old married woman with four children and lives with them in a simple house in a poor area. Her oldest child is 13 years old and the youngest one is 8 years old. Samira is the leader of the group. She is an uneducated woman, but she works very hard. Samira decided to help her husband in covering the expenses of the family. Three years ago, Samira started her door-to-door business selling women's and children's clothes to the local residents in her area. From this business, she earns good profits, but she spends most of the interest on the expenses of the family. On the other side, she wants to enlarge her business, but she doesn't have enough money to do that. For this reason, she is requesting a loan of 20,000 YER from AMB in order to purchase more women's and children's clothes and resell them to her customers.
In the future, Samira plans to expand her business through selling all kinds of clothes, makeup, cosmetics, accessories, and other items that will help her improve the living standards of her family.
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 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.
0View loans »
Success!! The loan was 100% repaid