The CEO of iute Albania, Akan Ajdini, recently appeared on TV SCAN’s Insider show, in a panel discussion with journalist Angelo Haruni. Mr. Ajdini delved into various aspects related to small loans and their impact on individuals and the economy in general.
One of the key points highlighted by Ajdini was the key role microfinance played in easing the financial burden of borrowers during the pandemic. iute Albania extended loan terms without imposing hidden fees or penalties, providing much-needed relief to borrowers facing economic uncertainty.
Explaining the rationale for higher interest rates in microfinance compared to traditional banks, Ajdini clarified that microfinance companies procure funds from international financial markets, where interest rates tend to be higher. Additionally, these companies take on greater risks by offering smaller loans to individuals who may not qualify for bank loans.
Ajdini also addressed the challenges stemming from the lack of human resources in the microfinance sector. With fewer professionals available to facilitate credit, the industry faces constraints in expanding its reach and effectively serving a wider clientele.
Despite these challenges, Ajdini remains optimistic about the untapped potential of microfinance in Albania. Citing statistics, he noted that the total amount of loans in Albania could go up to 38% of its GDP, leaving enough room for expansion and greater financial inclusion. This underscores the great opportunities for both lenders and borrowers to participate in and benefit from microfinance initiatives.
At the end of his speech, Mr. Ajdini underlined the transformative potential of microfinance in promoting economic growth and empowering individuals to achieve financial stability.
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