Sawsan Gaddo from Komombo- Aswan, a microfinance client who has obtained her first loan of 15.000 EGP to enlarge her business.
AKDN / Gary Otte
Sawsan Gaddo from Komombo- Aswan, a microfinance client who has obtained her first loan of 15.000 EGP to …
AKDN / Gary Otte
This page is also available inQuality of Life Loans
In most of the countries where AKAM entities operate, people have suffered through years of civil strife, war, insurrections, acts of terrorism, political turmoil and insurgencies. As a consequence, poverty levels are high and a large part of the population has no or limited access to any sources of financing.
In line with our mission of contributing towards poverty alleviation, enhancing financial inclusion and supporting economic development through the provision of financial services to micro and small businesses and households, a number of entities have introduced products and services that should, over time, help improve the quality of life of some of the deprived and excluded sections of society. The aim of AKAM institutions is to help people become self-reliant and gain the skills needed to graduate into mainstream financial markets.
Where possible, AKAM institutions work closely with other AKDN agencies that operate in health, education, housing, culture and rural development sectors.
The Shegnan bazaar in Badakhshan, Afghanistan. Several shopkeepers have benefited from loans from AKF to stimulate enterprise.
AKDN / Sandra Calligaro
The Loans in Practice
In Afghanistan, the First Microfinance Bank (FMFB) has designed its products with the aim to help improve life, learning, social conditions, career progression and physical/mental health. Thus, quality of life loans have been developed in the form of vehicle, marriage, home appliance, healthcare and student loans. The loan size ranges from US$ 200 to US$ 6,000 equivalent in local currency. Loans are not directly linked to income generation but supplement the income of the borrowers and are meant to contribute towards the enhancement of their income over a period of time. The bank undertakes a vigorous need assessment of the borrower by investigating their requirements and makes sure that repayments are affordable and sustainable.
FMFB Afghanistan has used its programmes for quality of life improvement loans to help reduce discrimination and poverty among marginalised groups. It offers them financial assistance for skills training, capacity building for income generation and functional literacy that will increase their employability and empower them in the long term. By encouraging the social integration of marginalised and disadvantaged individuals and by improving different aspects of life, the loan programmes can help reduce public expenditure for social services. Thus, quality of life loans can generate social impact and stimulate social inclusion and cohesion.