The Central Bank of Iran said banks and credit institutions gave 897.1 trillion rials ($2.32 billion) to knowledge-based companies in the first eight months of the current fiscal year (ends March 2023), up 122.6% from last year.
The loans went to 1,700 firms reflecting the inclination of the banking sector to support the rising number of knowledge economy, the CBI said on its website.
The regulator has pledged to increase support to startups, saying new measures will be announced to help ease collateral such firms need for borrowing.
CBI data indicates that private banks are seemingly eager to finance knowledge-based companies collectively allocating 84.3% of the total loans in the eight months. Private lenders posted 168.2% growth in loans to such firms.
Private banks, namely Bank Mellat Bank Saderat Iran and Tejarat Bank, collectively gave 402 trillion rials ($1.04 billion) or 44.9% of the loans during the period to 924 knowledge-based companies.
According to the central bank, Bank Mellat topped the list of banks in terms of loans to startups with 163.8 trillion rials ($425.4m), followed by Tejarat Bank with 137.7 trillion rials ($357.6m) and Bank Saderat Iran with 81.1 trillion rials ($210.6m).
Bank Melli Iran, Bank Sepah and Post Bank, three commercial government-owned lenders accounted for 10.5% of total loans during the period.
The share of five specialized banks, all owned by the government, in financing knowledge-based firms was 5.2%.
The CBI provided data on knowledge-based companies loans in the eighth month of the fiscal year (ended Nov 22) stating banks paid 109,1 trillion rials ($283.3m) to 597 applicants, up 83% on the same period last year.
During the month, Bank Mellat again topped the list with 20.7 trillion rials ($53.7m), followed by Tejarat Bank with 16.9 trillion rials ($43.8m) and Bank Melli Iran with 13.3 trillion rials ($34.5m).
According to data published by the Vice Presidential Office for Science and Technology, more than 7,000 knowledge-based companies are active nationwide.
The improvement in funding the knowledge economy shows the government’s resolve in boosting such firms, largely staffed by the youth. The Raisi administration has voiced support for tech firms and expressed willingness to increase funding to help the tech ecosystem grow.
The scope of a knowledge-based economy is not limited to the tech industry, it can also be used in other sectors like IT, nanotechnology, biotechnology and others.
Iran’s knowledge economy largely depends on the banking industry for funds, but there are plans to help them access funding via the capital market.
