Key notes:
FATEN has been a Kiva Lending Partner since June 2009
Loans through Kiva: $1,226,225
Number of entrepreneurs assisted through Kiva: 660
Focus: Low-income and economically active small-scale enterprises and micro entrepreneurs, especially women
Palestine for Credit & Development (FATEN) is a not-for-profit organization that emerged out of a project launched in Palestine by Save the Children International in January 1995. Independent since 1999, FATEN is now one of the leading microfinance organizations in Palestine, dedicated to providing financial services to small and micro entrepreneurs through its network of 12 branches in the West Bank and Gaza territories.
Mutasem maintains multiple thriving businesses in the ancient village of Kafr Qaddum in the northern West Bank. Building this modest enterprise took time — and the support of two loans funded by Kiva and facilitated by FATEN. With his first loan, Mutasem bought a horse and tilling equipment to plow the fields surrounding the village, some of them among the area’s historic olive groves that have great significance to the Palestinian people. As that endeavor grew, Mutasem and his wife, Sammar, took out a loan through Kiva to purchase a flock of sheep that now provides milk, cheese, and yogurt to feed their seven children and bring income at the local market. Their success has also shown that growth and security are possible, allowing them to plan for an even brighter future, including sending their daughters to college.
Hope despite instability
Despite the unstable political and security situation in the region, FATEN's staff is dedicated to improving the quality of life in Palestine by providing its clients a diversity of loan products to suit their needs and economic opportunities. The organization operates 12 branches in major cities in the West Bank and Gaza Strip and, as of March 2011, served more than 12,000 clients (of which 80% are women) and managed a portfolio of $24 million.
At-risk groups
According to data by the Palestinian Central Bureau of Statistics, 70% of the population is below the age of 30. As most small businesses hire a small staff, this leaves youth with very low chances for employment. Recognizing that the new generation needs more income-generating opportunities, FATEN has created a Pioneer loan specifically geared towards youth to help them start their own small businesses. FATEN also works with Palestinian refugees, who represent a significant number of the 57% of the population living below the poverty line. In 2009, 35% of FATEN's clients were Palestinian refugees living in camps around the West Bank and Gaza.
Working with traditions
FATEN offers a loan product that complies with Islamic law, which states that one can not receive interest on a loan because money should be viewed only as a medium of exchange, rather than as a commodity with its own intrinsic value. FATEN's Murabaha loan product has no monthly interest payments (the client instead pays an up-front fee for the service FATEN provides, and is thus appropriate for clients who view traditional micro lending as counter to their beliefs. This type of loan represents roughly 28% of FATEN's portfolio.
International support
The International Finance Corporation announced in April 2011 that it will be providing a $3 million loan and advisory services to FATEN to help expand its outreach and promote job creation in the region.
Learn more about FATEN's services on their partner page or support a person in Palestine.
