Small loans spur women’s businesses in Afghanistan
Small and home-based businesses have become a critical source of income for Afghan women seeking financial independence
KABUL, Afghanistan (MNTV) — Small and home-based businesses have become a critical source of income for Afghan women seeking financial independence after recent political changes, but access to credit brings mixed results, according to interviews with women entrepreneurs and economic experts.
Interviews with 23 women across several provinces found that most relied on small and medium loans to start or expand businesses ranging from tailoring and food production to dairy trading and healthcare.
Loan amounts ranged from 30,000 to 1 million Afghanis, with borrowers turning to commercial banks, microfinance institutions, foundations and nongovernmental organizations.
Seventeen of the women said the loans helped them sustain or grow their businesses, while six reported difficulties meeting monthly repayments because of weak sales and unstable market conditions.
Ruya Mohammadi, 34, who runs a manufacturing factory in Kabul, said a 500,000 Afghanis loan from Ghazanfar Bank enabled her to buy machinery and raw materials.
“The loan helped me overcome budget constraints, run my business successfully, and repay it on time,” she said.
Shazia, 33, from Kunar province, said she took a 50,000 Afghanis loan from an NGO to launch a home-based tailoring workshop after her husband became unemployed. She said steady growth has allowed her to repay the loan and cover household expenses.
Others described heavier pressure. Farzana Kohestani, who operates a cake and pastry business in Kabul, said a 350,000 Afghanis loan helped her continue working but monthly installments were a strain. Beheshta, 28, from Faryab province, said repeated repayment reminders and bank interactions added emotional stress despite helping her keep her business running.
Economic analysts say microloans can raise household incomes but warn that repayment terms must match economic realities. Iraj Faqiri, an economic affairs expert, said longer repayment periods could help low-income women stabilize their finances, while Qutbuddin Yaqubi cautioned that loans without careful assessment of markets and opportunities may fail to solve deeper problems.
Women’s rights activist Humaira Farhangyar said credit should be paired with training and guidance to help women entrepreneurs build sustainable livelihoods.
Officials at the Central Bank of Afghanistan said they oversee lending to ensure loans are Sharia-compliant and aligned with borrowers’ repayment capacity. Spokesman Hasibullah Noori said efforts to expand Islamic banking, digital services and financial inclusion aim to provide fair access to finance.
With women’s employment sharply reduced since August 2021, small loans and home-based enterprises remain among the few viable income options for many Afghan women, offering both opportunity and risk.
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