CBI Raises Ceiling of Security Deposit Loans

As per the decision of Money and Credit Council, a decision-making body with the Central Bank of Iran, the ceiling of security deposit loans will increase to 600 million rials ($2,111) in Tehran, 450 million rials ($1,583) in provincial capital cities and 350 million rials ($1,231) in other urban areas in the current fiscal year (started March 21). 
More than 450,000 households took out security loans in the fiscal 2020-21 and 2021-22, Mehr News Agency reported, citing the Ministry of Roads and Urban Development. 
The interest-only security deposit loans will be paid in the name of tenants but the sum will be put at the landlord’s disposal. The landlord is required to return the principal (the original sum of money borrowed) to the bank after a year while renters will repay the installments over 12 months.