Loans for solar power systems launched by Cihan Bank

ERBIL — Cihan Bank in Erbil, in coordination with the Central Bank of Iraq, is offering loans to both government and private-sector employees of up to 30 million IQD ($21,345), and to company and project owners of up to 1 billion IQD ($711,500), for installing solar energy systems.

Ashna Hama Ziad, from the bank’s corporate department, told 964media that employees participating in the Kurdistan Regional Government’s “My Account” project at the Cihan Bank must provide a guarantor with an existing account at the bank, and their monthly salary must not be less than 800,000 IQD ($569).

Launched in September 2023, the My Account project is a KRG initiative to promote financial inclusion and the region’s banking sector through the digitization of salary payments for over one million public sector employees.

If the guarantor does not hold a Cihan Bank account, the applicant must present two guarantors with accounts at other banks to borrow up to 10 million IQD. For loans above 10 million and up to 30 million IQD, the applicant must have two guarantors with accounts at Cihan Bank.

For companies and project owners, loan conditions vary based on the applicant’s request. In most cases, collateral such as land, property, or commercial premises is required. Loan amounts can reach up to 1 billion dinars, with an annual interest rate of 0.5% and a total rate of 3.5% over seven years.

The program comes as the KRG continues its 24-hour electricity project, which is already in use by more than 2 million people. The government plans to expand the project across the Kurdistan Region by the end of 2026.

Earlier in July, the state-run Rasheed Bank launched loans for the purchase of solar energy systems, with funding from the Central Bank of Iraq. The loans can reach up to 30 million IQD.