Khalil Hamid

A victim of theft turns bankruptcy into a boon!

Khalil Hamid

After completing his Bachelor degree in Dari (Persian) Literature, Abdul Khalil Hamid, 32 years old, started selling mobile phones made in China to make a living. He rented a shop in the Tahia Maskan area of Kabul city and was earning enough to support himself, his mother and three sisters.

After a year of successfully handling the business Khalil’s shop was robbed in 2008 and everything changed after that. Khalil filed a case with the authorities but was never able to recover his lost asset back.

Shortly after the robbery incident, Khalil met a loan officer from MISFA’s partner MFI, The First MicrofinanceBank (FMFB-A). The loan officer, Nesar Khan, referred Khalil to FMFB’s Branch so that he receives a loan as a small entrepreneur. Khalil took a loan of AFN 25,000 and combined this with his savings to restart his mobile phone business again. Two months later, his shop fell victim to another theft. As a result, he went bankrupt. This time, he didn’t bother reporting the case to the police, but he remained determined to continue with his business.The second loan from FMFB-A, amounting AFN 50,000, helped Khalil to repair his shop and shift to the business of selling computer softwares.

Within a year, Khalil managed to repay his entire outstanding loan with FMFB-A. Shifting to the software business turned out to be a risk-mitigating, yet lucrative decision. Khalil kept expanding his software inventory, such that it has now become his core business; although he continues to sell mobile phones on the side.

Increasing the loan amount from FMFB-A helped him to expand his business, generate more income, buy a car and get married. Until early 2013, Khalil was a single man, whose financial resources were not enough to afford the cost of engagement and marriage in Afghanistan, especially in capital, Kabul, where wedding ceremonies are the most costly.

Khalil has demonstrated to FMFB-A that he is quite capable of running a successful business and expanding it to a profitable outfit. As such, he is currently on his third and largest loan thus far: AFN 150,000 (USD 3,000).

The credit is for Khalil’s second venture as a property dealer. After obtaining a license from the Ministry of Justice, Khalil purchased a trailer annexed to his software shop and furnished it as his property dealing office. Since he opened his new business, Khalil has managed to finalize seven immovable property deals within two months.

Khalil has blossomed into a confident entrepreneur, who has his eyes set on other types of potentially lucrative businesses. “I will increase the loan size again the next time around. I want to get into the business of selling cars and other vehicles,” says Khalil.

Khalil’s perseverance to grow his business and FMFB’s continuous support has turned Khalil into one of the most successful clients of FMFB-A, and is a great example of how microfinance can contribute to the growth of Afghanistan’s private sector.

Published by MISFA (Microfinance Investment Support Facility for Afghanistan)
By Matin Ezidyar