Home Renovation Loan Limits to Increase

Bank Maskan, the state-owned lender specialized in financing the housing sector, has been tasked with financing the renovation of 300,000 housing units each year, as part of the sixth five-year development plan (2016-21). The bank is currently ready to extend lending to 55,000 applicants, said Neda Kasra Kermanshahi, the head of Bank Maskan’s Lending Department, adding that her bank is planning to make the loans more attractive, Ministry of Roads and Urban Development's news service reported on Thursday. The bank has been offering 300-500 million rials ($9,200-$15,400 at official exchange rate) as renovation loans for more than a year at 8%–the lowest interest rate in Iranian banking system, but the scheme has failed to attract applicants. Bank Maskan is now planning to increase the ceiling of its loans and reduce the waiting period to attract more customers.