The minister of roads and urban development has announced that further cuts in home loan rates, already in the single-digit territory, are on the cards with President Hassan Rouhani supporting the idea.
Abbas Akhoundi also told Tasnim News Agency on Tuesday that he has proposed the idea of reducing the interest rates for Housing Savings Account depositors–currently at 9.5%–to 6% and since President Hassan Rouhani is behind it, the measure is likely to be officially approved.
The government-owned Bank Maskan is the agent bank of the housing sector and the organizer of Housing Saving Accounts launched in June 2015. Other lenders, however, were allowed to offer the loans but few started to dole out the loans.
The scheme requires applicants to make an initial deposit and wait for a year to become eligible for credits that have a ceiling of 1.6 billion rials ($32,000) in the capital Tehran and lower in smaller cities and towns.
April 03, 2018 20:03
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Iran Gov’t Mulls Mortgage Rate Cuts
Akhoundi announced that he has also proposed further increasing the ceiling of the loans to 2 billion rials ($40,000), but that would need the approval of the Money and Credit Council–a decision-making body headed by the governor of the Central Bank of Ir
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