Interest-Free Loan Cap Increased

The Central Bank of Iran has set a new ceiling for Qarzol-Hassaneh (interest-free microcredit) loans to individuals. The allowance for each person has increased by 50 million rials ($1,309) or 33.3% to reach 200 million rials ($5,235), the official website of the central bank reported. The new directive, which mandated the cap increase, was notified on Tuesday to Resalat Qarzol-Hassaneh Bank and Qarzol-Hassaneh Mehr Iran Bank. According to the Banking Law passed in 1972, the Central Bank of Iran is responsible for regulating the operations of Qarzol-Hassaneh funds based on their annual financial statements. More than 3,000 Qarzol-Hassaneh funds were identified during the tenure of the current government and a databank was formed to organize them.