The Kurdistan solar loan program expands as Cihan Bank partners with the Central Bank of Iraq. Together, they offer loans to government and private employees as well as companies to install solar energy systems.
Cihan Bank provides loans up to 30 million IQD ($21,345) for employees. Meanwhile, company and project owners can borrow up to 1 billion IQD ($711,500) to fund solar installations.
Ashna Hama Ziad from the bank’s corporate department explained the eligibility criteria. Employees involved in the Kurdistan Regional Government’s “My Account” project must provide a guarantor. The guarantor needs an active account at Cihan Bank, and the applicant’s salary must exceed 800,000 IQD ($569) monthly.
Launched in September 2023, the “My Account” project promotes financial inclusion and digitizes salary payments for over one million public workers across Kurdistan.
If the guarantor does not hold a Cihan Bank account, applicants can present two guarantors from other banks for loans up to 10 million IQD. For higher loans between 10 million and 30 million IQD, two guarantors with Cihan Bank accounts are mandatory.
For companies and project owners, loan terms vary. Most often, collateral such as land or commercial property is required. Loans can reach 1 billion IQD with an annual interest rate of 0.5%, totaling 3.5% over seven years.
This initiative supports the KRG’s ongoing 24-hour electricity project. Already serving more than 2 million people, the government plans to extend this service across Kurdistan by 2026.
Earlier this year, Rasheed Bank also launched solar loans funded by the Central Bank of Iraq. They offer similar loans up to 30 million IQD to encourage solar energy adoption.
Overall, the Kurdistan solar loan program provides vital financial aid to expand clean energy. It aims to boost renewable energy use and support regional development.
With growing support from banks and the government, the Kurdistan solar loan program stands as a key step toward sustainable energy for the region.
