An integrated approach to enable economically active people (women, men and youth) borrow from formal financial institutions in the absence of collateral in order to support micro entrepreneurs purchase assets or meet their working capital needs. This is a unique financing mechanism that combines savings, training and micro financing to promote access to finance, culture of saving, financial literacy and micro-enterprise in Somalia.
Features & Benefits
- Qardh-al-Hassanah (benevolent loans) from $300 to $2,000.
- Access to planned savings
- Access to financial literacy/education
- Access to entrepreneurship skills training
- Simplified approval process with flexible security requirements
- Flexible and longer repayment period
- Maintain an active account with Amal Bank
- Own a stable micro business/ an income generating micro-business
- Bank statement for the last 3 months
- No collateral security required but one guarantor or third party guarantee
- Intensive supervision and field visits from Amal Bank
- One time $25 application fee
- A $10 minimum monthly savings contribution required
- To encourage the beneficiaries to develop a habit of saving, meet their repayment consistently and grow their business, all loans have 4 graduation phases:
- Inception Phase: Beneficiaries are allowed to borrow from Amal Microfinance loans from a minimum of $300 to a maximum of $2,000.
- Development Phase: Beneficiaries are allowed to borrow from Amal Microfinance up to 50% more from inception phase
- Growth Phase: Beneficiaries are allowed to borrow from Amal Microfinance up to 50% more from Development phase
- Graduation Phase: Beneficiaries are allowed to borrow from Amal Microfinance up to 50% more from Growth Phase.
- No additional loans are disbursed to a borrower unless she:
- Has been current and consistent in her repayment
- Has actively increased her savings
- Has made a positive impact and uplifted her living standards on income, business and job growth.