With the aim of promoting startups in rural areas the government of President Hassan Rouhani has launched a nationwide project offering low-interest loans to entrepreneurs in underprivileged areas.
As part of the Comprehensive Employment Scheme, startups in rural areas can apply for loans with interest rates of 4% to 6%, Tasnim news agency reported.
An estimated 20 trillion rials ($728 million) have been allocated for the project and the money will be provided by the National Development Fund of Iran — sovereign wealth fund.
Abolfazl Razavi, deputy for rural development and deprived areas to the first vice-president says, “Startups active in handicrafts, tourism, mining technology, livestock husbandry, and producing genetically modified crops in areas with populations of less than 10,000 are eligible for the loan.”
After registering for the loan, the startups will be audited by a provincial or national committee depending on the loan amount.
Allocation of loans under 100 billion rials ($606,000) can be ratified by provincial committees while larger projects need to be referred to national auditors.
According to Razavi, so far hundreds of requests for loans have been processed and projects worth 51 trillion rials ($309m) have been approved. “Loans worth 27 trillion rials ($164m) have already been given to the entrepreneurs.”
In developed and developing countries, governments have tapped startups’ potential for boosting rural development and aiding farmers. The approach has also gained momentum in Iran.
Dozens of successful startups are active. An example of such firms is Keshmoon, based in South Khorasan Province, which is taking eco-friendly measures and has ventured into building a direct bridge between saffron farmers and consumers intending to secure a better future for the prized saffron industry and help ensure a reliable source of income for farmers.
National plans, like the one introduced by the government, can provide farmers struggling with economic and environmental challenges some solace and increase their hope for a better and sustainable future.
