Economy, Business And Markets

Move to Offer More Loans to SMEs

Move to Offer More Loans to SMEsMove to Offer More Loans to SMEs

In a bid to boost business, commercial banks in Iran have been urged to increases the number of loans going to small and medium-sized enterprises (SMEs), said Ali Asghar Mir Mohammad Sadeghi, credit deputy at the Central Bank of Iran.

The CBI's priority for the current fiscal year is to help small businesses grow, IRIB News website quoted him as saying on Wednesday. A proposal was put forth and finally approved by the Money and Credit Council to increase the number of loans to small businesses, the official said. "A framework has also been drafted that could help the applicants in desperate need of loans benefit from the assistance."

He further said that an agreement was reached on Tuesday between the CBI and the representatives from the ministry of industry on how to allocate the loans to the businesses. Another meeting was set to be held between the CBI and the Manufacturers Union later on Wednesday to work out the final details of the framework.  He hoped that the details, once finalized, would be issued to the banks by next week.

According to Sadeghi, the lending rate would be 21% with a 3-5 year repayment period.