Banks restrictions on individual loans increase women debt — SIGI

AMMAN — Banks restrictions in granting individual loans increase women debt from microfinance companies, according to a statement by the Sisterhood Is Global Institute (SIGI).

Commercial banks “have tight constraints on loans as they require a monthly salary or a permanent income”, SIGI said.

Securing loans in banks also “requires mortgaging immovable property, bank statements and guarantors”, the statement read. Unlike banks, granting loans for women who do not have a job or a source of income in microfinance companies is facilitated by loan guarantees, SIGI added.

This puts women at risk of being unable to repay and thus being liable for legal prosecution.

SIGI called on relevant bodies to reconsider the required conditions for loans as well as to focus on women vocational training to support them and empower them to achieve economic growth.