MICROCAPITAL BRIEF: Microfinance Institution Alif Capital of Tajikistan Receives Banking License

Alif-Sarmoya (Alif Capital) Micro Credit Deposit Organization LLC recently has been approved by the National Bank of Tajikistan (NBT) to provide banking services in both hard currency and somoni, the currency of Tajikistan. Specifically, Alif Capital can now receive deposits, transfer money and conduct currency exchange operations. While the organization had been microlending, it is unclear whether Alif Capital was already providing any of these other services before the license was approved by NBT.

Established in 2014, Alif Capital is marketed as the first regulated microfinance institution (MFI) in Tajikistan that offers Sharia-compliant finance, which follows Islamic law by eschewing conventional interest payments in lieu of concepts such as the sharing of profit and loss. Its loan terms vary from four to six months, with an average size of USD 4,000 as of 2015. The loans may be used for housing, vehicles and consumer purchases. Additional financial data on Alif Capital are not available.

By Jason Wei, Research Associate

About Alif-Sarmoya (Alif Capital) Micro Credit Deposit Organization LLC

Alif Capital, a Tajikistan-based microcredit institution, was launched in 2014. The organization is marketed as the first regulated microfinance institution (MFI) in Tajikistan that implements Sharia-compliant finance, which follows Islamic law by eschewing conventional interest payments in lieu of concepts such as the sharing of profit and loss. Its loan terms vary from four to six months, with an average size of USD 4,000 as of 2015. The loans may be used for housing, vehicles and consumer purchases. Additional financial data on Alif Capital are not available.

[1] Alif-Sarmoya Micro Credit Deposit Organization LLC granted license for banking operations, http://www.news.tj/en/news/alif-sarmoya-micro-credit-deposit-organization-llc-granted-license-banking-operations

[2] Alif Capital, https://en.wikipedia.org/wiki/Alif_Capital

[3] Alif Capital, https://www.linkedin.com/company/alif-capital

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