By: Shukria Kohistani
A number of Afghan citizens are asking the country’s banks for providing them with further loan facilities, saying that the banks should ease terms for granting them loans.
“In all other countries, if a person wants to get loan from a bank, they can easily get it as there are lots of facilities provided by banks, but unfortunately most Afghan citizens cannot meet conditions for getting loans in many banks in Afghanistan. Besides, the banks’ profit for the loans is also so high,” said Ihsan, an employee of a private company in Afghanistan.
He said that the requirements each bank had for granting loan could not be met by most of Afghan citizens even investors, asking the banks to ease their requirements for granting loans to the people particularly Afghan investors who would like to invest in the country.
Shaima, an Afghan businesswoman, says the banks’ requirements for granting loan is so challenging as they are asking for a deed of one’s residential house and other properties, which is challenging for investors and businesspeople to provide.
Nadira is another businesswoman who has started her business with a small tailoring installation in Kabul.
“I’ve started my business with a small tailoring shop and now I want to develop my business; therefore, I need to get loan from a bank. But, the bank does not grant me the loan as I don’t have a private house to provide them a deed,” Nadira said, adding that most people cannot get loan from banks as they’re living in rented homes or apartments.
On the other hand, a number of government employees whose salaries are very low want to get loan from banks, but most of banks in Afghanistan have their own requirements for granting loans to the people as they are asking for a deed of one’s property, land or apartment as well as several references; therefore, it is very difficult for government employees to meet all these requirements for granting loans from banks in the country.
“As a government employee, I want the Afghan banks to ease their requirements for granting loans to government employees as they’re already guaranteed by government,” said Hamid, a government employee.
Officials for banks union say the country’s banks have so far provided more than 39 billion AFG loans to the people particularly investors. According to the banks’ union, the number of those demanding for loan is increasing in consideration to problems caused by COVID-19 pandemic in the country. Officials for the banks’ union stressed that they were making effort to ease requirements for granting loans to Afghan businesswomen in the country.
“Demand for getting loan has increased as the country’s central bank in close coordination with the country’s banks union has brought necessary facilities in requirements for granting loans to the people,” said Edris Elmi, an official for the banks’ union.
Granting loans by banks is considered as one of the most significant services for development of business and industries in the world, but in Afghanistan requirements for granting loans by banks are not simple due to security and social challenges.