Business people often take loan for different purposes such as to increase working capital, invest in equipment, maintain business operation, and many other business purposes. A loan like many other decisions in business can be seen by the business owner as either risky or advantageous If the loan is productive it certainly increases the values but when it is not it will become a cost to the business.
Zardozi started granting business loans to clients in the year 2011 since that time our clients in four regions have benefitted from different types of loans. Women use cash loans, loans in kind, and mixed loans to develop their business or purchase equipment and supplies. Women who recently join Zardozi would be granted a business startup loan after completion of three months of membership and business training classes. When their application for a loan is approved by our loan committee and the loan is issued to them, they must repay their loans in installments within five or ten months based on the size of their loans. Around AFN 7,228,000 as cash loans were issued to the clients in four regions during the last year.
It is very pleasing to know that our clients are satisfied with our loan policies and procedures as Zardozi is always committed to set policies that occur most comfortable for the clients.
Based on a quarterly feedback survey that we conducted in March 2020 we found that 91% of borrowers are satisfied with the loan reimbursement policy and procedures, and 94% of them were satisfied with the Loan application and approval process.
“What I like about the loans Zardozi provides is that the payment process is flexible as we have never faced issues in clearing them. All the procedure is well designed to meet our business status. I think we are so fortune being benefited from this type of loans” said Dordana Zardozi’s senior client.
Zardozi does not charge interest on the loans it provides. The objective is to just facilitate the access of women to microfinance supports needed for their business development, hence, our clients are required to pay an amount of AFN 50 for administrative costs incurring in the processing of the loans.