The Central Bank of Iran said banks and credit institutions have expedited marriage and micro loans to encourage child birth and support needy households wanting to rent a home.
Mehdi Sahabi, the official in charge of the CBI’s Credit Department, said banks gave 217,000 childbirth loans worth 86.74 trillion rials ($280 million) since the beginning of current fiscal year (March 21) until July end.
In addition, 320,658 applicants took out marriage loans worth 440 trillion rials ($1.4 billion) in the period, the CBI’s public relations office said.
In line with official state policy to arrest the rapidly declining birth rate, special loans are given to newlyweds who had a child in the last fiscal year (March 2021-22) and the following months.
Accordingly, first-time parents are eligible for 200 million rials for the first child. They receive 400 million rials for the second child, 600 million rials for the third, 800 million rials for the fourth and 1 billion rials for five children and more. The loans are offered at 4%.
As per provisions of the 2022-23 budget, each of the partners who tie the knot can apply for 1.2 billion rials in marriage loans, at 4% interest.
To help encourage early marriage, lenders are required to give 1.5 billion rials per partner if the bride is below 23 years and the groom under 25.
According to Sahabi, banks have given security deposit loans to the tune of 8.61 trillion rials to 14,850 applicants since the beginning of June.
Security deposit loans were announced by the government in 2020, as a coronavirus aid package for households unable to lease a home due to the jump in rents and home prices unseen in Iranian history.
Banks are obliged to provide eligible applicants loans to rent a dwelling place up to 1 billion rials in Tehran city, up to 700 million rials in other big cities and 400 million rials in other urban areas across the country.
Borrowers are charged with 18% interest.
