Question 1

What is Family Microfinance House?

Accepted Answer

Family Microfinance House (formerly Family Bank) is Bahrain's first Islamic microfinance institution, operating as a specialized financial institution focused on providing Sharia-compliant microfinance services. The institution serves low-income individuals, small businesses, microenterprises, and families with limited income across Bahrain.

As a pioneering Islamic microfinance bank in the Middle East, Family Microfinance House combines the principles of Islamic finance with the proven Grameen microfinance model to deliver sustainable financial solutions tailored to the needs of underserved populations.

Question 2

When was Family Microfinance House founded?

Accepted Answer

Family Microfinance House was inaugurated in January 2010 under the patronage of His Majesty King Hamad bin Isa Al Khalifa. The institution was established to address a critical gap in Bahrain's financial services sector, where larger commercial banks typically offered minimum financing amounts starting at BD 7,000 (approximately USD 19,000), far beyond the reach of microentrepreneurs.

The institution was founded with an authorized capital of BD 15 million and a paid-up capital of BD 5 million, operating as a not-for-profit bank under the supervision of the Central Bank of Bahrain.

Question 3

Where is Family Microfinance House headquartered?

Accepted Answer

Family Microfinance House is headquartered in the Kingdom of Bahrain. The institution operates multiple branches across the country, including locations in Budaiya and other strategic areas to serve Bahraini families and entrepreneurs.

The institution falls under the oversight of Bahrain's Ministry of Labour and Social Development, reflecting its social development mission.

Question 4

Where does Family Microfinance House operate?

Accepted Answer

Family Microfinance House operates throughout the Kingdom of Bahrain, serving communities across multiple governorates. The institution has expanded its branch network to reach underserved populations in various regions, including the Northern Governorate and Budaiya.

The bank maintains a physical presence in strategic locations to ensure accessibility for low-income individuals, families, senior citizens, housewives, and job seekers across Bahrain.

Question 5

What services does Family Microfinance House offer?

Accepted Answer

Family Microfinance House provides a comprehensive range of Sharia-compliant microfinance products and services, including:

Financing Programs:
• Group-based financing (adapted from the Grameen group-based lending model)
• Home Business Program supporting Bahraini families to establish or develop small businesses from home
• Small and Micro Enterprise Support Program for aspiring entrepreneurs
• Microenterprise financing for expansion of existing microenterprises
• NGO/MFI financing to support socioeconomic development projects

Non-Financial Services:
• Entrepreneurial and vocational training
• Business counseling and consultation
• Professional networking opportunities
• Marketing support
• Financial literacy and business management skills training

Savings Products:
• Mandatory savings accounts with monthly deposits to encourage financial discipline

All financing is interest-free and compliant with Islamic banking principles, requiring no collateral or commercial registration for acceptance. The institution offers financing at fees that are reportedly 40 percent lower than competing institutions, and loans are forgiven in cases of death or grave disability.

Question 6

What makes Family Microfinance House unique?

Accepted Answer

Family Microfinance House distinguishes itself as the first formal Islamic microfinance institution in Bahrain and the broader Middle East region. The institution uniquely combines the globally recognized Grameen Trust microfinance methodology with Islamic finance principles, creating a hybrid model specifically designed for the Bahraini context.

Key Distinctive Features:
• Sharia Compliance: All products and services adhere to Islamic banking laws, addressing the needs of approximately 40 percent of microfinance clients in Muslim-majority countries who refuse conventional microfinance due to religious concerns
• No Collateral Required: Financing is based entirely on trust, eliminating barriers for the neediest Bahrainis who lack traditional collateral
• Social Mission: Operating as a not-for-profit institution with a focus on empowerment, income generation, and skills enhancement
• Integrated Support: Combines financial services with comprehensive training, counseling, and capacity building
• Partnerships: Works in cooperation with the International Grameen Foundation and various local and international corporate and NGO partners

Since its inception, the institution has disbursed more than BD 14 million in funding, supporting Bahraini families and contributing to job creation and economic development.

Question 7

What type of financial institution is Family Microfinance House?

Accepted Answer

Family Microfinance House is classified as an Islamic Microfinance Institution regulated by the Central Bank of Bahrain. It operates under Bahrain's specialized regulatory framework for Islamic financial institutions, which includes specific Sharia governance requirements and prudential standards.

The institution functions as a not-for-profit microfinance bank, positioning it within Bahrain's robust Islamic finance sector. Unlike conventional commercial banks, it focuses exclusively on microfinance services for underserved populations, aligning with both financial inclusion objectives and social development goals.

As a regulated financial institution under the Central Bank of Bahrain's licensing directory, Family Microfinance House adheres to the Kingdom's comprehensive Islamic banking rulebook, which covers capital adequacy, risk management, business conduct, and disclosure requirements specific to Islamic financial institutions.

Family Microfinance House

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About Family Microfinance House in Bahrain

Family Microf­inance House