Economy, Business And Markets

BMI Gives $645m in Interest-Free Loans

BMI Gives $645m in Interest-Free LoansBMI Gives $645m in Interest-Free Loans

Bank Melli Iran has provided 18 trillion rials ($645 million at official exchange rate) in interest-free loans between March 21, 2014 and March 6, 2015, IRNA reported.

Newly-weds received a major portion of the loans amounting to 9.5 trillion rials ($339 million) in total. Some 3.8 trillion rials ($138 million) were given in collateral loans, 2.5 trillion rials ($90.5 million) in self-employment loans, 968 billion rials ($35 million) in urgent loans, and nearly 345 billion rials ($12 million) in home business loans.

An additional 26 billion rials ($932,000) was given in healthcare loans and 3.7 billion rials ($135,000) in student loans.    

Bank Melli, the first national Iranian bank, was established in 1927 by a parliamentary order. Since then, it has consistently been one of the most influential Iranian banks. It is now the largest commercial retail bank in the Middle East with over 3,300 branches and 43,000 employees.

The bank handles most of the government’s financial transactions, including but not limited to taxes, fines, utility payments and government employee salary payments.

Due to being state owned, Bank Melli has lagged behind other banks in offering new services including e-banking.