Finances 9teen

The microcredit offers a unique opportunity to many inhabitants in the developing countries to start a business or of creating a company. These loans of small quantity are granted to those people whom do not count on resources, neither guarantees and the less still endorsement to accede to a bank loan.

Even so, sometimes, microcredits are facilitated, although to a high interest. Reason than more sufficient so that the Islamic organizations of aid have introduced their own concept of microcredit. Thus it happens in Kosovo, where poorest they can accede on a credit by means of the organization Islamic Relief.

Ahmet Bubalku has a farm in the town of Zabel i Ultë with nine hens and one cow. Thanks to the obtaining of a microcredit of Islamic Relief it could raise a small rural company. Altogether it received 3,400 Euros that will have to amortize in a pair years. With that money it bought seeds to plant Popes, tomatos and onions. Ahmet recognizes that “without this loan I do not know how would have made to feed my three children. The government does not make anything to stimulate agriculture.”

Ahmet is one of the 1,375 inhabitants who have benefitted from the concession of a microcredit. This region is poorest of Kosovo. The war, that concluded ten years ago, did not leave not one house still on. Before that devastating panorama, Islamic Relief decided to finance microcredits but not only to mount companies but also to reconstruct the houses. One is small sums of money that are reversed in the acquisition of windows and new doors. The microcredit counts on a great acceptance, it comments Islam Hasani de Islamic Relief, and that other institutions financial, near the place, grant higher loans:

“The interest rate of them is nevertheless very high. The opening commission is of the 22 percent. We did not acquire interest by the loan. We only acquired by each credit a small sum of 60 Euros by the expenses of administration, with abstention of the amount of the commercial transaction. We grant credits that go from the 400 to 5,000 Euros.”

Common Microcrédito versus. Islamic microcredit
But that one is not the unique difference between a common microcredit and an Islamic microcredit. According to Hasani, the relation between the financista and the microentrepreneur are much more personal in the Islamic world that in a common and current bank. Before somebody is considered to accede to a loan, it is visited by the consultants of Islamic Relief in his house. What is what the petitioner needs? It will be able to amortize in time? Of this form, they are completely abreast of the situation and they will be able to take part if problems with the reimbursement arise, comments Ahmet:

“When my daughter fractured the leg, I had to destine a part of the loan to pay the hospital. I needed months more to give back the money. Clear that if had been a commercial bank already they would have obstructed I the goods, but it knew that the Islamic financial institutions would include/understand my situation”.

One hundred percent of amortization
The rate of amortization is almost of the 100 percent. In fact, although to Ahmet it has left only a Euro to arrive in order month, is in charge to give back until the last cent of its loan. In the future it hopes to manage another credit to install a greenhouse. By the way, Ahmet is not the unique one that fulfills its obligations, counts Hasani:

“The rate of amortization is very high here. People could be poor but, she is very honest”