FAQs

Microfinance refers to the provision of financial services to poor and low-income clients who have no access to the conventional financial system. Microfinance includes a broad range of financial services; including, credit, savings, insurance, and remittance.

Microcredit is one of various financial services provided by microfinance. In particular, microcredit refers to a small (micro) loan provided to a client by a microfinance institution. Microcredit is often offered without collateral to an individual or a group (through group lending or village banking methodologies).

Typical microfinance clients are low-income persons that are unable to access the formal financial sector. These persons are often self-employed and household-based entrepreneurs. In rural areas, they are usually small farmers who are engaged in small income-generating activities. In urban areas, microfinance activities are more diverse and include shopkeepers, service providers, artisans, street vendors, etc.

The costs associated with providing microcredit to the poor are high.  This is because lending several micro loans entails much more staff time and effort (i.e. visiting the client’s home or workplace, evaluating the client’s creditworthiness, processing the loan, and following-up with client to minimize default) than lending one large loan.  This is one of the reasons why banks don’t often lend small loans to the poor.  In order for microfinance institutions to become sustainable and continue to provide microfinance on the long-term, they must be able to cover their costs.   

No, Sanabel does not provide any direct or indirect type of lending. Sanabel is a membership driven network that provides a range of services to its members.  For more information on the services provided by Sanabel network, you can visit the "Activities" section on the top menu bar.

Sanabel’s members include microfinance institutions (non-governmental organizations (NGOs), non-banking financial institutions, national networks and international organizations), and banks.   For more information on Sanabel’s members you can visit this link.

Any microfinance institution or bank that provides microfinance service to clients or national microfinance network that is more than one year old and is based in an Arab country can become a member with Sanabel.  For more information on eligibility for full or affiliate membership with Sanabel, please visit this link. 

If you represent a donor agency, an investment company, an educational establishment, or are an individual with an interest in microfinance in the Arab region you may also apply for membership as a “Friend of Sanabel”.  For more information on this category of membership you can visit this link.

Sanabel provides a package of services and benefits excusive to its members.  For more information on benefits of membership with Sanabel you can visit this link.

Once you get your legal structure in place, Sanabel can help you in different ways.  Sanabel can arrange for capacity building and knowledge exchange peer exchange visits with other peers within the region.  The network can also play an important role in advertising your job vacancies and training all the newly recruited staff members.  Technical assistance may also be provided, on a needs-basis, for the preparation of financial statements and financial disclosure according to international standards.  Finally, the network can help put you in promoting yourself as well as learning more about the most significant events and happenings in the microfinance industry.  

Sanabel can provide you with the necessary data and information that may help you in deciding which microfinance institution may be worthy of your investment.  The network will not make any specific recommendation but will guide you to the resources and information available that will facilitate your decision process. 

Sanabel currently has no internship policy.  However, in its efforts in promoting the microfinance industry and the network’s own best practices, Sanabel may create an opportunity for students who have completed their undergraduate studies and/or those in the process of completing their undergraduate or postgraduate studies to familiarize themselves with the microfinance sector to gain practical experience in a professional working environment. 

Internship opportunities will be offered in line with Sanabel’s program needs for a limited number of interns, taking into account spatial and mentorship considerations.   Priority shall be given to Arab students (particularly those pursuing postgraduate students) in order to invest in educating young Arab professionals interested in the microfinance sector. To inquire on the availability of internship opportunities in Sanabel, please send an email to info@sanabelnetwork.org. 

You can read on the microfinance sector in the Arab region in English, Arabic, and French on the Sanabel website.  For more specific information on the sector in Arabic you can visit the Arabic Microfinance Gateway.