Bank Maskan Granted $77m in Loans Under Youth Savings Account

EghtesadOnline: Bank Maskan has offered close to 70,000 loans worth 19,000 billion rials ($77 million) under the Youth Savings Account from the Iranian year ending March 2006 until now, Hibna, the news portal of the state agent bank of the housing sector reported.

News ID: ۷۵۰۹۱۶

07 September 2020

Fifteen years into the introduction of Youth Savings Account, over 1.63 million accounts have been opened by customers 18 years old or parents of young adults below 18.

The fund has so far absorbed 20,000 billion rials ($81.69 million).

Over 11,000 people bought homes using the account in the year ending March 2018.

A total of 14,000 loans were also paid under Youth Savings Account during Iranian years ending March 2019 and March 2020.

The customers of Youth Savings Account may deposit on a monthly basis in the bank during 5-15 years to become eligible for housing loans amounting to 2,500 million rials in Tehran ($10,212), 2,100 million rials ($8,578) in large cities, namely Karaj, Mashhad, Tabriz, Isfahan, Ahvaz, Qom, Kermanshah and Shiraz, and 1,840 million rials ($7,516) in other cities at 9% interest rate.

Applicants need to deposit a monthly minimum of 500,000 rials ($2) in the first year that would increase gradually in the following 15 years to 1.06 million rials ($4.3). Loans paid under the Youth Savings Account have the longest mortgage repayment period of up to 20 years.

The scheme also allows a lock-in period of five years but the ceiling of the loan will decrease to 1,500 million rials ($6,127) in Tehran, 1,100 million rials ($4,493) in large cities and 840 million rials ($3,431) in other cities.

Monthly deposits also need to increase accordingly for early withdrawals.