FAQs

ABOUT MICROFINANCE

What is microfinance?
What is the goal of microfinance?
Is microfinance supported by the government?
What is an MFI?
How do MFIs reach Afghanistan’s poor households?
Is microfinance only practiced in Afghanistan?
Who are microfinance clients?
What are some examples of financial products and services offered by MFIs?
Are MFIs the same as commercial banks?

HOW MICROFINANCE WORKS 

If I want to take out a loan, what is the first step?
Can anybody apply for credit?
If I am borrowing for the first time, how much can I borrow?
Can people borrow money for special occasions, for example, weddings and funerals, or to buy gold?
How do clients use the loans?
What is the fee that MFIs charge to borrowers? How much is it and what is it for?
What happens if a client is unable or unwilling to repay the loan?
Why do some MFIs requires savings when giving a loan?

BENEFITS AND IMPACT OF MICROFINANCE

How can microfinance benefit the poor?
Has there been any significant impact on Afghan lives resulting from microfinance?

SUSTAINABILITY OF MFIs

Why can’t government/donors subsidize some of the MFIs’ operational costs so poor clients pay a minimal fee, or none at all?
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