The loans increased by 1,438.7 trillion rials ($11 billion) compared to the same time last year to post an annual 29.8% growth, the Central Bank of Iran reported on its website.
As reported earlier, loans given to help boost working capital of manufactures amounted to 3,408.4 trillion rials ($25.6 billion), accounting for 54.4% of all loans, Financial Tribune reported.
Working capital loans increased by 560.2 trillion rials ($4.2 billion), equivalent to average growth of 19.7% annually across all economic sectors, the CBI said.
The percentage was way higher (71.3%) for businesses in the mining and industrial sectors. Out of a total of 1,904.4 trillion rials ($14.5 billion) paid to the sector, 1,358 trillion rials ($10.2 billion) went for boosting working capital of businesses.
The sharp increase in lending to manufactures could be attributed to the rise in production costs and strenuous government efforts to boost non-oil trade because the key oil sector has been hit hard by US sanctions.
It also reflects banking authority concerns about the viability and survival of clients and manufactures struggling due to the increasing economic challenges.
The CBI has stressed that despite the rise in lending, measures can and should be taken to curb the inflationary impact from rising demand for goods and the ensuing liquidity.
Top Borrower
In terms of the diversity of economic sectors, the services sector borrowed 2,151 trillion rials ($16 billion) -- the biggest share of loans given to 2.64 million recipients.
Industrial and mining sectors were next with 1,904 trillion rials. Loans were granted to 276,159 applicants. This was followed by the commercial sector that took out loans worth 1,209.3 trillion rials given to 2.37 million people.
As is usually the case, the agriculture and housing sector received the lowest amount of loans. Loans to farmers reached 532 trillion rials and the housing sector borrowed 461 trillion rials. Farming and housing loans were given to 1.15 million and 828,000 recipients, respectively.
Apart from working capital loans, banks also gave money to help companies grow, repair and renovate. Homebuyers were also among the loan recipients.
Banks granted loans worth 721.7 trillion rials for setting up new businesses, 678.7 trillion rials for developing businesses, 171 trillion rials for repair and renovation, 758.3 trillion rials for purchasing goods and 194.8 trillion rials in home loans. Loans for miscellaneous needs amounted to 329.3 trillion rials during the nine-month period.