Iranian banks and credit institutions gave 1,426.9 trillion rials ($4.7 billion) in loans in the first month of the present fiscal year (March 21- April 21).
The loans were up 22.8% or 265.3 trillion rials ($884 million) from the corresponding period last fiscal year, according to data released by the Central Bank of Iran.
Drawing on data from banks posted on Samat platform, the CBI for the first time distinguished loans to businesses and those given to households.
Samat is an electronic platforms to control lending and is the Persian acronym “Centralized Database for Loans and Liabilities”.
Accordingly, companies took out 1,312.7 trillion rials ($4.3b) of the total loans and households the rest, accounting for 92% and 8% of the total lending, respectively.
As usual, working capital loans topped the list. As per CBI data, businesses borrowed 1,087.7 trillion rials ($3.6b) to boost working capital, accounting for 82.9% of the total loans to businesses.
Mining and industrial firms were the main recipients of working capital loans with 420.3 trillion rials ($1.4b), accounting for 87.1% of the total 482.5 trillion rials in loans to the key sector.
Apart from working capital, banks gave money for other needs including for creating and expanding business, repairs/renovation and for buying homes.
An estimated 150.37 trillion rials ($500 million) went for setting up new businesses, 61.94 trillion rials ($207 million) to expand businesses, 2.31 trillion for employment needs, 58 trillion rials for purchasing goods and 16 trillion rials in emergency interest-free loans.
In terms of overall economic sectors, a big portion of banking resources (loans and credit) went to the services sector at 565.2 trillion rials ($1.8b).
The next major recipients were industries and mining firms at 482.5 trillion rials followed by commerce 124.53 trillion rials.
As always, the agriculture and housing sectors were at the bottom end. Farmers borrowed 51.2 trillion rials and people and businesses active in the construction sector 86.73 trillion rials.
Lenders also paid 13.41 trillion rials ($44 million) in marriage loans in the month. 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.
As per budgetary rules of the present fiscal year, each couple can borrow 700 million rials in marriage loans. The loan is $1 billion in cases when the bride is below 23 years and the groom under 25.
The CBI said despite the rise in lending measures need to be taken to curb the inflationary effects of the loans and their impact on rising demand for goods.
