More Marriage Loans on the Way

The Central Bank of Iran is set to meet the immediate demand for 550,000 marriage loans, CBI’s deputy for credit affairs announced.

“Currently, half a million applicants are waiting to receive the marriage loan. CBI intends to reduce the number to 50,000 individuals,” Ali Asghar Mirmohammad Sadeqi was also quoted as saying by CBI’s official website.

According to the official, marriage loans would be extended to applicants from the banks’ interest-free loan fund worth 50 trillion rials ($1.3 billion) and CBI would make no contributions.

“The exigency plan will be executed in two months starting July 23,” he said.

Noting that 70,000 to 100,000 people apply every month for marriage loans, Sadeqi added that 70,000 to 80,000 loans are being doled out by banks every month.

Based on CBI’s statistics, 31 banks and credit institutions currently give marriage loans, which have witnessed a 158% growth over a period of 48 months ending March 20, 2017.

Lenders charge a 4% interest for the loan, which has to be repaid in four years.

More than four million individuals have received marriage loans in the last four years. The total amount of loans was valued at 191.3 trillion rials ($5 billion), registering a 72% increase compared to the preceding four years.

 Up until 2015, 30 million rials ($800) were given as interest-free marriage loans per person. The government increased the amount to 100 million rials ($2,600) per person, and also earmarked the same amount in the current year’s budget, which was passed by the parliament.