Word Studies in the New Testament:
24. Camel — through a needle’s eye (κάμηλον διά τρύπηματος ῥφίδος). See on Mark 10:25; Luke 18:25. Compare the Jewish proverb, that a man did not even in his dreams see an elephant pass through the eye of a needle. The reason why the camel was substituted for the elephant was because the proverb was from the Babylonian Talmud, and in Babylon the elephant was common, while in Palestine it was unknown. The Koran has the same figure: “The impious shall find the gates of heaven shut; nor shall he enter there till a camel shall pass through the eye of a needle.” Bochart, in his history of the animals of scripture, cites a Talmudic passage: “A needle’s eye is not too narrow for two friends, nor is the world wide enough for two enemies.” The allusion is not to be explained by reference to a narrow gate called a needle’s eye.
Vincent, M. R. (2002). Word studies in the New Testament. Bellingham, WA: Logos Research Systems, Inc.
What is Jesus saying? it’s easier for a literal camel to go through the eye of a
literal surgical needle (and Luke uses the word for “surgical needle” in the Greek
text) than for a rich man to go to heaven. That’s the reason that the disciples don’t say, “Oh, you mean this camel that has to get down on its knees?”
No. They say, “This is impossible!” And Jesus, of course, then says, “Yes, it’s
impossible, but with God all things are possible.”
In Summary-When Christ compared the rich man entering the kingdom of God as more difficult than “a camel to go through the eye of a needle” the hyperbole was used to warn the wealthy that they must have faith in him without reliance upon their own possessions, actions, and status as rich people.