>>16891888The Eye of the Needle was a gate in the city walls of Jerusalem. It was a single person doorway that would be open at night and later in the day when the main gates for traffic would be closed. The original (intended) audience of that text was the Jews in the region of Jerusalem who would have all known this.
It would be very difficult for a camel to get through but not impossible like getting a camel through the eye of a modern steel needle as todays readers would imagine.