This group is called Sahar. It consists of three women from Dhamar, Yemen. They applied for a loan of 150,000 YER from AMB. Iman is a sweets maker who lives with her family in Dhamar. She is the leader of the group. Iman is a 30-year-old widow with five children. Her oldest child is 14 years old and the youngest one is four years old. For three years, she has been making different kinds of sweets in a small store. It is her only source of income. Her sweets are famous for its delicious taste and you can always buy hot, fresh sweets from her store. This is why she always has a lot of customers. Iman wants to expand her business. She wants to buy another new oven and equipment for making the dough in bulk for the sweets. In order to accomplish this goal, Iman requested a loan of 50,000 YER that she plans to use to buy the equipment for the sweets and the oven for her store. Iman looks forward to making all kinds of sweets and she hopes to expand her business more by opening a large sweets store to meet all the demands of the customers.
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.
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.