CBI Again Raises Ceiling on Security Deposit Loans

The Money and Credit Council, a top financial decision-making body with the Central Bank of Iran, has given the green light to increase security deposit loans to 1,000 million rials ($3,333) in Tehran, 700 million rials ($2,333) in provincial capital cities and 400 million rials ($1,333) in other urban areas in the current fiscal year (started March 21), a deputy minister of roads and urban development said. 
“The interest-only security deposit loans will be paid to individuals who have not taken out this loan so far. The repayment period of security deposit loan is five years,” he was quoted as saying by News.mrud.ir. 
The ceiling on security deposit loads is being raised this month for the second time.
Earlier in May, it was announced that the loans would increase to 600 million rials ($2,000) in Tehran, 450 million rials ($1,500) in provincial capital cities and 350 million rials ($1,166) in other urban areas. 
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 the loan) to the bank after the end of the lease agreement while renters will pay its installments.