Economy, Business And Markets

Maskan Raises Cap on Construction Loan Limit

Maskan Raises Cap on Construction Loan Limit Maskan Raises Cap on Construction Loan Limit

Bank Maskan announced it will soon offer construction loans with no deposits for urban sectors. It will also grant additional incentives to projects that make use of energy-efficient techniques and advanced technology.  

Mohammad Hashem Botshekan, Maskan’s CEO, said “The Money and Credit Council’s decree allows us to finance up to 80% of the construction projects,” Mehr News Agency quoted him as saying on Sunday.

Since construction costs vary in different urban areas, cities are categorized in four main groups with various loan ceilings. Tehran, Karaj, Mashhad, Isfahan, Shiraz and Ahvaz are set to receive 1.3 million rials ($42,900) for building projects, while buildings planned to use energy- saving technologies would be able to take out 1.5 billion rials ($49,500).

“Builders in other urban areas with more than 200,000 residents could take out 1.1 billion-1.3 billion rials, and the cap is 800 million-1 billion rials for projects in less-populated towns,” Botshekan said.

He noted that small and medium-sized construction companies can qualify for up to 80% of their expenses. “Larger companies like those involved in the production of raw materials like cement, steel and tiles can use Maskan’s credit facilities for one year.”  

Botshekan also noted that his bank would introduce new financing methods by the end of the fiscal year (March 20, 2017) including issuing bonds and securities and asset management services.

The housing bank will also offer repayment guarantees to builders wanting to sell their property on installment basis.

 “Maskan would guarantees repayment of the installments, if the amount is less than 1.5 billion rials ($49,500) with monthly payments of less than 30 million rials ($990).”