Small Loan, Big Leap: How Omar Turned $2,000 into Opportunity

Omar Mohamed Shariff took his first loan of $2000 from IBS Bank, a FIG-Somalia implementing partner. He needed the money to increase his stock after operating for about seven months. “The process was very simple and the bank staff were very cooperative,” says Omar.

He says the loan enabled him to buy more stock thus increasing sales within a short time. Having learned the value of the loan, Omar has been repaying it while borrowing more. “This is now the fourth time I am taking the loan. I pay back $180 per month and I committed to finish it on time to abide by the regulations of the bank.”

He says he has employed his friend who now works with him in the shop. About his family, Omar says he can now support them with the income from the shop. Omar adds that he intends to borrow a bigger amount and open a second branch in another part of the city.

According to Omar, growing the business was not easy given the presence of bigger shops some of which sell at wholesale prices. He says his dream of running a successful business came true when he was able to increase his stock through loans and get more credit after repaying.

“It is not easy to get money to run your business in this town. Relatives feel overburdened and are not able to lend you money,” says Omar. “But the IBS Bank loan really helped me. I am now assured of a source of credit but I am very committed to ensure I abide by the rules of the bank.’