This video provides an in-depth look at how Shabelle Bank developed and deployed a Sharia compliant loan product for small and medium-sized entreprises in the Somali region.
Inspired by Aisha, an Ethiopian mother of nine and productive loan client, Shabelle Bank developed a Sharia-compliant working capital loan for small and medium entreprises. Instead of providing financial capital, the bank acts as a supplier, selling inputs to entrepreneurs at marked-up prices. Entrepreneurs then repay the bank in instalments that align with their business growth. With each successful payment and growth in savings, entrepreneurs improve their credit rating and are able to access more capital.
