BMI Lends $453m to Newlyweds

EghtesadOnline: Newlyweds have received more than 188,000 marriage loans worth 59.3 trillion rials ($453 million) from the state-owned Bank Melli Iran since the beginning of current fiscal year in March 2019.

News ID: ۷۸۵۲۱۱

05 January 2020

BMI, which is the biggest domestic lender, had given 41.4 trillion rials ($315 million) to couples in more than 265,000 loans during the last fiscal year (ended March 2019).

The higher loans during the first nine months of the current year compared to the last fiscal year is due to the two-fold increase in the amount of loans granted to the new couples, Financial Tribune reported.

When debating the budget bill for the current fiscal year, the Majlis last February voted to increase the value of marriage loans to 300 million rials ($2,300) per partner. The approved value was double the value proposed by the government in its draft budget.

The interest-free loans have a 5-year maturity and lenders are told to prioritize lending to the new couples compared to other loan applicants.

Overtime the value of marriage loans has increased in proportion to hikes in inflation. The 30-million-rial loan four years ago reached 150 million rials during the last Iranian year (March 2018-19).

The government and relevant organizations have often reiterated their concern over the declining marriage rates in the country, and are encouraging the youth to marry by offering incentives.

Incentives are announced regularly as part of efforts to increase the rate of marriage and boost population growth.

As per current rules, the couples can apply for marriage loans up to two years after the pronouncement of their marriage contract.