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Khana Loan Initiative

Basic info

• Name: Khana Loan Initiative
• Funder(s): USAID and AKF USA
• Location: Afghanistan
• Project Period: 2009 - 2012
• Implementing partners (including AKDN agencies): First MicroFinance Bank-Afghanistan (FMFB-A); Aga Khan Agency for Microfinance (AKAM)
• AKF USA contact: ruraldev.akfusa@akdn.org

Project Summary
The Khana Loan Initiative designs and tests a solution to deliver small housing loans to Afghanistan’s urban and rural poor.

Following years of neglect, damage from war, and poor construction, many families in Afghanistan suffer from inadequate housing, and there is a shortage of accommodation for the rapidly growing population.

Additionally, housing loans are extremely limited in Afghanistan and access to financing for improving their homes is a major barrier for poor families. The Khana Loan Initiative targets Afghan families in the lowest income categories and provides them access to loans to improve and expand their homes.

The Khana Loan Initiative is implemented in three phases, with USAID support for the second and third phases:

1. Roll-out an urban pilot in Kabul and Herat;
2. Scale-up and expand the urban housing microfinance portfolio of FMFB-A; and
3. Develop, pilot, and roll-out housing microfinance products for rural areas.

The program also seeks to improve the quality of housing in Afghanistan by offering Construction Appraisal and Advisory services.

Project Accomplishments

• Since inception, nearly 8,000 families have received loans, worth a total of over $10 million
• 22 percent of the beneficiaries are women
• FMFB-A launched the pilot phase of the Rural Housing Improvement Loan Product in six branches: Herat, Badakhshan, Kunduz, Jabul Siraj, Balkh (Ishkashim), and Bamyan

Related stories
Upsides Online Success Story “Accessing affordable housing in Afghanistan”