Bank Melli Iran, the largest domestic lender, paid 239,000 plus marriage loans to newlywed during the last fiscal year that ended in March.
According to BMI’s news portal, the total amount of loans were 75.05 trillion rials ($471.5 million), up 45% compared to fiscal 2018-19.
However, the state-owned bank paid the low-interest loans to smaller number of applicants last year. It had given 41.4 trillion rials ($260 million) to couples in more than 265,000 loans in fiscal 2018-19.
The fact that the ceiling of marriage loans increased two-fold in the last fiscal year explains why the lender paid a higher amount but the recipients declined compared to the year before.
As per the budget law on loan payments to newlyweds, the amount increased from the previous 150 to 300 million rials ($1,875) per partner in the last fiscal year.
The interest-free loans have a 5-year maturity and lenders have been told to prioritize lending to the new couples compared to other applicants.
Overtime the value of marriage loans has increased in proportion to high and rising inflation. The 30-million-rial loan five years ago has now grown to 500 million rials ($3,125) per partner in the current fiscal year.
Over the years the government and sociologists have voiced deep concern over the declining marriage rates and are encouraging people of marriage age not to delay tying the knot.
Incentives are announced as part of state efforts to increase the rate of marriage and boost population growth.
As per current rules, couples can apply for the loans even after two years following the pronouncement of their marriage contract.
Average marriage age, like the divorce rate, has risen significantly in Iran in the past two decades. A variety of economic and social factors are at play and contribute to this sorry state of affairs.
The pattern has seriously undermined the systematic efforts of state institutions to expand population growth.
Moreover, when people do marry, the number of their children is mostly limited to one, simply because living costs have gone through the roof and so is the cost of raising children.
