Banks gave 659,000 marriage loans worth 344 trillion rials ($1.37 billion) to newlyweds since the beginning of the current fiscal year last March to December 10.
According to Ali-Asghar Mirmohammad-Sadeghi, the Central Bank of Iran vice governor for credit department, marriage loans have continued since inception in 1985 and are reflected in government budgets in the past five years. Marriage loans are interest-free bank loans to be repaid in five years.
Mirmohammad-Sadeghi noted that the CBI set up a banking platform in 2010 to track the marriage loans to new couples. "Based on data from the platform, lenders have so far paid 12. 258 million marriage loans worth 1,172 trillion rials ($4.68 billion)," he was quoted as saying by the CBI public relations website.
As per rules, couples can apply for loans maximum up to two years after the pronouncement of their marriage. Lenders have been told to prioritize the couples when it comes to approving loans. Over the years the amount of marriage loans has increased due to runaway inflation and the steep decline in purchasing power.
The 30-million-rial loan five years ago is now 500 million rials ($2,000) per partner. It was raised from the previous 150 to 300 million rials ($1,200) per spouse in the last fiscal year.
The government and relevant organizations have often voiced concern over the declining marriage rates and offer financial incentives to encourage the youth to tie the knot. But this too has failed as the marriage age keeps rising with fewer young people willing or able to start a family.
