The facilities were doled out in various forms, including bond facilities, savings funds, home loans or construction facilities, the bank’s official news outlet HIBNA reported.
Bank Maskan posted a considerable increase in loan output during the period. The number of loans granted by Bank Maskan shows a rise of 42% over last year’s similar period, outpacing the average 6% growth registered by the country’s banking network.
When it comes to the value of loans, a year-on-year growth of 26% is observable for the value of facilities provided by Bank Maskan during the period, Financial Tribune reported.
Since the beginning of the current Iranian year (March 21, 2018), nearly 185,000 people bought homes by taking out Bank Maskan loans.
The number of Bank Maskan’s home loans stood at 184,745 during the period, registering a 42.5% rise year-on-year.
The value of home loans was 90 trillion rials ($674.15 million) in the 10-month period.
Resources of Bank Maskan’s Housing Savings Account, the mortgage loan program of the bank, reached 87.56 trillion rials ($655 million) by Jan. 20, registering an 8.5% rise year-on-year.
Bank Maskan’s Housing Savings Account constitutes 12% of the total resources of Bank Maskan.
HSA is the bank’s primary and most successful initiative created nearly four years ago, which requires applicants to make down payments and wait for a year to become eligible for the cheapest home loans in the country.
Target applicants mostly comprise first-time prospective homebuyers.
The scheme requires applicants to make an initial deposit and wait out the one-year maturity period for credits plus the depositor’s down payment.
When the scheme was first launched, the interest rate of loans was set at 14%. In February 2017, after a directive by the Money and Credit Council, they were reduced to 9.5% in general cases and 8% for those who wanted to buy a home in rundown neighborhoods of the cities. These interest rates make HSA loans the cheapest in the country.
HSA is said to be a self-sustaining fund since all the resources it absorbs are redirected to boost the financial strength of Bank Maskan for it to be able to support prospective homebuyers through cheap facilities.