A decree by the Central Bank of Iran says the Qarzol-Hasaneh (microcredit) funds should not charge loan application fees higher than four percent, ISNA reported. According to a CBI inspector Alireza Jafari, the directive has been approved by the CBI but is yet to be endorsed by the Money and Credit Council, a decision-making body of the CBI. Jafari added that according to the directive, the cap for microcredits is 150 million rials ($4300) at four percent. “Charging any fees higher than four percent by the Qarzol-Hasaneh funds is prohibited.” Jafari reinterred that the funds are banned from giving .loans to their board members, although “not every institution abides by this rule.”
