Home Savings Deposits Cross $2 Billion

EghtesadOnline: Major savings initiatives in Iran aimed at easing home purchase and construction have continued to grow since the current Iranian year began on March 21.

News ID: ۷۸۳۷۵۶

20 August 2018

According to Bank Maskan, the state-run agent bank of the housing sector that operates all three savings initiatives, the total volume of home savings deposits held by the end of the fourth month of the current year on July 22 reached 92.10 trillion rials ($2.19 billion).

The figure was 9.2% higher than the 84.43 trillion rials ($2.01 billion) held by the lender’s savings initiatives at the end of the previous fiscal year, reports HIBNA, the bank’s official news portal.

The three initiatives include Housing Savings Account that requires first-time homebuyer applicants to make down payments and wait for a year to become eligible for cheap loans, the youth housing savings program and the home construction savings program, Financial Tribune reported.

“A detailed analysis of housing savings programs in these three categories show that HSA has had the highest share of savings deposits, but this was natural and expected due to the high pull of this initiative in attracting deposits spurred by first-time homebuyers,” Bank Maskan wrote.

HSA had an overwhelming share of 82.9% of all savings deposits at the end of the fourth month of the current Iranian year (July 22). By that time, a total of 349,527 applicants had made deposits with the account, equal to 69.91 trillion rials ($1.66 billion), the report said.

Bank Maskan CEO Abolqasem Rahimi Anaraki had announced on Aug. 14 that more than 480,000 people have opened accounts with the initiative since its inception about three years ago.

“Some 360,000 accounts should have been opened in this scheme as per the predictions, but we’re ahead by 120,000,” Rahimi said.

The total volume of deposits registered by the youth savings initiative by July 22 also showed a 3.1% increase compared to the start of the year and reached 17.04 trillion rials ($405.71 million). The number stood at 16.53 trillion rials ($393.57 million) at the start of the year in March.

Bank Maskan failed to divulge any figures for the third savings initiative dealing with home construction, most probably because it had not registered a positive growth rate.

But the lender published details about its lending portfolio. It said facilities aimed at purchasing homes and buildings stood at the top of its lending portfolio with a share of 61.1%.

After those loans, which were significantly boosted by high demand from HSA, civil participation loans, renovation loans, Murabaha facilities and interest-free loans were facilities with the highest demand in the period. They held respective shares of 14.7%, 12.2%, 5.8% and 5.1%.