Business And Markets

$3.3 Billion Given in Social Assistance Loans Last Year

Banks are obliged to lend in the form of as Qarz-ol-Hassanah schemes (interest-free microcredit) despite mounting concern about the detrimental impact on the already troubled and oft-censured banking industry
$3.3 Billion Given in Social Assistance Loans Last Year
$3.3 Billion Given in Social Assistance Loans Last Year

In the last fiscal year (ended March 20), banks gave 1,690 trillion rials ($3.3 billion) in social assistance loans to 1.94 million low-income applicants largely for youth marriage, childbirth and to those wanting to rent a home.  
According to the public relations department of the Central Bank of Iran, banks accepted 824,900 applications for childbirth loan worth 330 trillion rials ($647.5 million) in the year. 
Banks were ordered last year to lend to young parents to encourage childbirth. The money is given to couples who had a child in the previous fiscal year (March 2021-22) and after. 
Some 1,230 trillion rials ($2.4 billion) were marriage loans to 896,000 applicants, up 55% year-on-year. Marriage loans are interest-free repayable in seven years. Couples can apply up to two years after the pronouncement of their marriage.  


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