Tamkeen-Family Bank in micro-financing push
Manama, January 17, 2011
Tamkeen has joined hands with the Family Bank to provide a targeted 500 beneficiaries with access to micro-financing.
The BD1 million ($2.65 million) portfolio will be used by Tamkeen to subsidise 50 per cent of the profit rate charged for micro-loans ranging from BD500 up to BD7,000 which the bank will provide.
An agreement was signed by Tamkeen's enterprise and human capital development vice-president Dr Ahmed Abdulghani Al Shaikh and Family Bank chief executive officer Dr Atef El Shabrawy.
'This micro-finance model is based upon the successful lending model of the Bangladesh Grameen Bank and has been made Sharia-compliant in the Bahrain context,' said Dr Al Shaikh.
'It addresses a financing gap which commercial banks do not handle and by subsidising micro-businesses and individuals with 50 per cent of the finance cost from Tamkeen's portfolio, we believe we are making it even easier for these small businesses and entrepreneurs to use the micro-loans facility.'
Eligible candidates must be Bahrainis between 21 and 58 years who either own a micro-enterprise business or has a suitable business plan to own one.
Funding will be made against a specific need for the business.
The scheme is specifically for those who are not able to access financing schemes, which are available for businesses through small and medium enterprises financing provided by commercial banks.
'The Family Bank was established especially to serve needy families and we are delighted that with Tamkeen's assistance, we can reach entrepreneurs and micro-businesses which are most in need of our support,' said Dr El Shabrawy.
'This service bridges a financing gap by providing required financing resources at an affordable cost to enable individuals and micro-businesses to sustain business activities and promote new ones.
'In the long-term, low income families will enjoy an improved socio-economic standing.'-TradeArabia News Service