Saleem, 39 years old, is a married man who lives with his wife and six children in Sana’a Governorate. Three of his children are already enrolled in school.
Saleem is an employee in the public sector and the only breadwinner for his family, as his wife is not working. His salary is very low and, certainly, it hardly covers the most essential expenses. Saleem’s family is suffering a lot because of the absence of public electricity as a result of the ongoing war of more than 18 months. His wife cannot operate any electrical home appliances, especially the washing machine and refrigerator. Also, his young children are getting bored at night as they cannot watch their favorite TV programs. Saleem has always wanted to purchase a solar power system to end the suffering of his family, but since it costs a lot he couldn’t.
When he heard that Al-Amal Microfinance Bank has resumed its activities of providing financial services and providing loans for solar energy without interest rates, he decided to apply for a loan of 135,000 YER to purchase a 100W solar panel, a 100Amp. battery, a 20Amp. solar charge controller, a 1,000W power inverter, a DC/AC LED TV and a DC/AC satellite receiver.
Saleem is looking forward to starting an income-generating project in order to have additional income source.
This loan is special because:
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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.