004 - Ghani, A. M.

Akhtar Mohammad Ghani:

Policy and Loan Recovery in Microfinance Institutions - Case of First Microfinance Bank and other Microfinance Institution in Nangarhar



The aim of this study is to show the state of microfinance in relation to the specification of credit policy, loan recovery, and the relationship of credit policy and loan recovery of microfinance institutions in Nangarhar province, Afghanistan.This study was conducted with the help of analytical and as well descriptive methods of research to show the aimed perspective. Data was collected from primary sources as well as from secondary sources. Data collection from primary sources was done with the help of a questionnaire that was filled up by 100 correspondents. The data collection from secondary sources includes books, reports, journals, papers, websites and other sources. The study also shows that these microfinance institutions should make some specific changes in their credit policy to ensure the loan recovery in due time. The interest rate applied on the micro credits in Nangarhar is not considered fair. In addition, loan period and loan amounts are the most significant factors of credit policy, so they should be assessed in every credit cycle according to the economic, social and political environment, as they highly affect the loan recovery.

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