Social Loans Helping Make Ends Meet

Community behaviors differ from one country to another, depending on the levels of urbanization and culture in those societies. Mutual supportive behavior is more common in rural communities due to strong family and kinship ties, as well as the presence of social authority that can address issues within the community.

Normally, Yemeni society is predominantly rural and tribal, with a large number of people engaged in agriculture. Despite being poor, they adhere to various mutual support behaviors that help alleviate poverty and deprivation, enabling vulnerable families to improve their economic status and live with dignity, even if it is at the lowest socially acceptable level.

The Yemeni rural community is particularly cautious about banking transactions and prefers to keep their finances and assets private. Some individuals even conceal much of their wealth from close partners, such as spouses. Nevertheless, this does not prevent many members of the society from practicing familiar habits, such as supporting those in need until they recover.

The phenomenon of social lending or advances is evident in Yemeni society in which a plenty of individuals feel ashamed to reject a borrower's request, especially when the they promise to repay within a specific period. This solidarity was particularly apparent during recent war periods and the epidemic, which prevented many from earning daily wages. Surprisingly, there are various forms of advances, including loans for family living expenses, daily cash from neighborhood groceries, construction, marriage, therapy, etc.

Rarely does a borrower not feel obligated to repay the loan, yet it is dependent on their financial situation or their occupation status. Regarding it as a virtue and a great matter, some lenders forgive insolvent debtors to facilitate their difficulties in their lives. Others view lending as a wonderful opportunity to help someone in need by gifting them some amount of money in the first place and asking them to consider it as their own in order to make a good use of it in their essential needs.

Helmy is a married man with two children in his forties. He works in construction for daily wages. In fact, he believes that self-employment does not guarantee a stable monthly income to support an individual or even one's family. He persuades others to work with him, emphasizing the importance of working continuously without taking breaks. you must wake up early and go to the workers area until a contractor who needs some workers comes to take you, after getting convinced of your skills, to work with him that day and perhaps more than that according to the size of the work, the quality of your work, and not taking rest during work time.

“I earn six thousand Yemeni riyals per day in exchange for lifting stones or assisting builders. However, my monthly expenses are worth 250,000 riyals, which includes rent, water and electricity bills, and basic food for my children.” Helmy said. Unfortunately, he often struggles to find work and has to take advances from the neighborhood grocery store until he gets the chance to pay them back. “Sometimes, I need money to help one of my children to the hospital or pay the education installment to the school at which my eldest son is learning as he is in the first grade. Therefore, in such cases, I have to search for a person who gives me an advance in order to be able to arrange my affairs.” He added.

Helmy and his coworkers on a construction site

Helmy is committed to paying off all his debts quickly but feels anxious about bank transactions due to the strict timing and interest rates they impose.

Overall, Helmy's story highlights the challenges faced by those who work in daily wage jobs without a stable income source.