Economy, Business And Markets

Banks Improving Loan Facilities

Banks Improving Loan FacilitiesBanks Improving Loan Facilities

Chief executive of Iranian Urban Development and Revitalization Corporation announced that Bank Maskan and Ghavamin Bank can also grant renovation loans, which were formerly provided only by five banks, namely Melli, Mellat, Sepah, Saderat and Tejarat.

Mohammad Saeid Izadi, also a deputy minister of roads and urban development, told IRNA on Saturday that over the last five months, 27,500 customers have applied for the renovation loans.

“Bank Maskan has announced that it is ready to provide 5,000 of the applicants with the loans,” he said.  

Following the Money and Credit Council’s decision in late April to put a 24-percent cap on lending rates and decreased deposit rates to 20 percent, banks set 24 percent rate for the participatory contracts and 21 percent for installment sale contracts, noting that respectively 9 and 10 percent of the rates are to be subsidized by the government.

Renovation loan ceiling is currently 300 million rials ($10,000 at official exchange rate), Izadi said, adding that mass builders and female breadwinners have priority to receive the loans.

 Small Industries

 A deputy manger of Iran Small Industries and Industrial Parks Organization said Bank of Industry and Mine plans to grant 400 to 500 billion rials ($13-17 million) in loan to every small business.

Gholamreza Soleimani pointed to the efforts to reduce bureaucracy, saying that in the past it took companies three years to receive a loan, the time has now reduced to a large extent, ISNA reported on Saturday.

“As soon as a firm submits the required documents, its profile will be assessed in a joint session of the bank’s CEO and ISIPO’s managing director. The applicant would then be provided with the loan in less than 45 days,” he stated.

Some 205 applications were submitted to the banking system over the last three months, he said, adding that BIM aims to allocate 20 trillion rials ($700 million) in loan to small- and medium-sized enterprises.