Banks paid marriage loans worth 7,781 trillion rials to 10,681 newlyweds since the beginning of the current fiscal year (March 21) up until April 24.
The loans were given in line with provisions of the fiscal budget that have considerably raised the amount, the Central Bank of Iran said.
Banks have often been criticized for their aversion to lend to new couples who claim that they lack sufficient funds. According to an IRIB report 82,000 applicants are on the waiting list for loans as banks refuse to budge.
The marriage loan increased again this year. As per the government rules, newlyweds are eligible for 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 the youth to tie the knot earlier, the loans have been doubled to 1 billion rials per couple if the bride is below 23 years and the groom under 25.
Marriage loans are interest-free and should be repaid in seven years. Couples can apply for loans maximum up to two years after the pronouncement of their marriage.
Bank loans to 823,000 newlyweds climbed to 430 trillion rials ($1.7 billion) in the last fiscal year (March 2020-21) up 65% compared to the year before.
Marriage loans have increased in recent years due to a variety of reasons, namely runaway inflation, economic problems of households, joblessness and decline in living standards that have discouraged most young people from starting a family.
Caption: Banks have often been criticized for their aversion to lend to new couples who claim that they lack sufficient funds.
