Funded

Total loan: $3,600

Hawar's Group

Iraq / Sewing

A loan helped a member to buy a better quality sewing machine, a table for ironing and a small generator.

Hawar's Group's story

Hawar is a 20 years old, young Iraqi woman. She is divorced and has no children. Given limited career options due to cultural restrictions and domestic constraints, Hawar is one many Iraqi women who are working from home.

Hawar is using her sewing skills to generate some income and assist her family in meeting its financial needs. Having started to assist her family at a very young age, she already has four years of experience with this little business activity.

Hawar would like to make some improvements to the business and buy a better quality sewing machine and a table for ironing. She would also like to make sure that she is able to work during the hours when her city experiences power outages so she would also buy a small generator.

Relief International - Microfinance Iraq, Kiva's partner, offers group loans for clients unable to provide a guarantor, thereby unable to apply for a loan individually. As a group, the members of any group loan collectively guarantee the loan. Groups consist of three to five clients. Within groups, each client is evaluated on his or her repayment capacity. All group members receive the same loan amount as the individual with the lowest repayment capacity in the group.

In this group: Hawar, Benaz, Shamsa

More about this loan

About Relief International Microfinance 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.