Business And Markets

$1.7 Billion Given in Marriage Loans

$1.7 Billion Given in Marriage Loans
$1.7 Billion Given in Marriage Loans

Bank loans to newlyweds climbed to 430 trillion rials ($1.7 billion) in the last fiscal year (March 2020-21), indicating 65% growth compared to the year before. 
Loans went to 823,000 loan applicants, according to the Central Bank of Iran public relations website. 
Marriage loans are interest-free to be repaid in seven years. As per rules, the couples can apply for loans maximum up to two years after the pronouncement of their marriage.  
The marriage loan is expected to increase further this year as the ceiling has increased for the newlyweds. 
As per the present fiscal budget, newlyweds can receive marriage loans worth up to 1 billion rials ($4,000).
Rules stipulate at least 40% increase in marriage loans -- from the previous 500 million rials to 700 million rials per couple. 
To encourage marriage at a lower age, the loans are doubled to 1 billion rials per couple if the bride is below 23 old and the groom under 25. 
Over the years marriage loans have increased due to runaway inflation and the decline in living standards depriving many young people from tying the knot. Banks have been urged to prioritize new couples when it comes to the cumbersome rules for processing and approving marriage loans.

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