Modern credit system being extended to rural areas
KABUL (Pajhwok): To accelerate the process of issuing bank loans to medium and small entrepreneurs in remote areas through a modern credit infrastructure, Da Afghanistan (central) Bank (DAB) on Monday signed contracts with 13 nongovernmental organizations in Kabul.
DAB with support from the World Bank Group have put in operation the Collateral Registry (CR) and the Public Credit Registry (PCR) systems, which became fully operational in 2014 and are now used by all commercial banks.
Bank officials in Afghanistan say with the establishment of these systems they have taken a step ahead of most of their neighbouring countries.
DAB’s deputy governor Essa Khan Turab, who signed the 13 contracts, told a press conference here that the NGOs would extend the PCR system to villages.
Under the contracts, the NGOs would establish sub-offices to provide credits for bank clients, deliver information on credits and also to collect full information about the credit takers and save it in the system, the head of Afghanistan Financial Institutions union, Hashmat Ser Amarkhel, said.
He said people who had access to the internet could access the CR services online round-the-clock and with the new systems, a bank could get information about a person seeking loan if the person had already received loan from another bank.
He said people in rural areas would be issued loans ranging from $20,000 to $300,000 through the systems.
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