The Bank of Industry and Mine (BIM) said it funded some 210 knowledge-based companies and startups in the country since last year.
According to a press release posted on the BIM website, the lender paid more than 46 trillion rials ($105 million) to the knowledge based firms.
The loans went largely to meet working capital need and support companies producing exportable goods. Startups with higher job opportunities, indigenizing technologies and offering effective tech solutions were prioritized by the bank .
Knowledge-based companies wanting to borrow should assure BIM about the quality of their products.
The Central Bank of Iran data show that 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 banking sector’s inclination to support the rising number of knowledge economy, the CBI website said.
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 shows that private banks are seemingly more 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 enterprises.
Private banks, namely Bank Mellat, Bank Saderat 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 CBI, Bank Mellat topped the list in terms of loans to startups with 163.8 trillion rials ($425.4m), followed by Bank Tejarat 137.7 trillion rials ($357.6m) and Bank Saderat 81.1 trillion rials ($210.6m).
Bank Melli, Bank Sepah and Post Bank, three commercial government-owned lenders accounted for 10.5% of total loans.
The share of five specialized banks, all owned by the government, in financing knowledge-based firms was not more than 5.2%.
The CBI also 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.
Bank Mellat again topped the list with 20.7 trillion rials ($53.7m), followed by Bank Tejarat 16.9 trillion rials ($43.8m) and Bank Melli 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.
Improvement in funding the knowledge economy shows the government’s policy to help boost such firms that are largely staffed by the youth. The Raisi administration has voiced support for tech firms and expressed willingness to increase funding to help them grow.
The scope of the knowledge-based economy, however, is not limited to the tech industry, it can also be used in other sectors like IT, nanotechnology and biotechnology.
Iran’s knowledge economy largely depends on the banking industry for funds, but there are plans to encourage them to find funding from the capital market.
