Since the beginning of the calendar year in late March banks and credit institutions gave 790 trillion rials ($2.5 billion) loans to encourage youth marriage and childbirth.
Mostafa Qamari-Vafa, head of the Central Bank of Iran public relations department said Sunday the money was given to 860,000 people in a little less than six months.
“Banks gave 342,000 loans worth 130 trillion rials [$420 million] to promote childbirth,” he wrote in a note on his social media account.
Lenders were obliged in mid-April to give loans to new parents to encourage childbirth. The money is given to new parents who have a child in the previous fiscal year (March 2021-22) and after.
The first-time parents are granted 200 million rials for the birth to their first child, 400 million rials for the second child, 600 million rials for the third, 800 million rials for the fourth child and 1 billion rials for five children and more.
Banks gave 620 trillion rials ($2 billion) in marriage loans to 450,000 applicants in the same period.
Marriage loans are interest-free repayable in seven years. Couples can apply for loans up to two years after the pronouncement of their marriage.
The youth are mostly disinclined to tie the knot, start a family or have children due to the unstable economic conditions, galloping inflation, joblessness, prohibitive housing costs and an uncertain future
The government has doubled marriage loans for this year. As per the 2022-23 budget, each partner who ties the knot is eligible for 1.2-billion-rial loan.
To help encourage early marriage, lenders are required to grant 1.5 billion rials per partner if the bride is below 23 years and the groom under 25.
Increase in lending is with the aim to boost population growth. Many sociologists have warned that the population is ageing and the youth are mostly disinclined to tie the knot, start a family or have children due to the unstable economic conditions, galloping inflation, prohibitive housing costs and an uncertain future.
Lenders are obliged to continue lending as Qarzol-Hassanah (interest-free microcredit) amid concerns about the detrimental impact of mandatory lending on bank financial performance.
According to Qamari-Vafa, lenders gave security deposit loans worth 40 trillion rials ($129 million) to 71,000 people wanting to rent a home in the said period.
Security deposit loans were announced by the government in 2020, as a coronavirus aid package for the large numbers unable to rent a home due to the historic increase in rents and home prices.
Lenders are required to provide eligible applicants loans for renting a home up to 1 billion rials in Tehran City, 700 million rials in other big cities and 400 million rials in other urban areas in the country.
