May 11, 2019 – Some Iranian banks have imposed more stringent credit rules on wedding loans, demanding up to three guarantors and proof of employment form a couple, semi-official Tasnim news agency has said.
“Changing the existing credit standards and lending rules is against the law which requires a couple to provide only one guarantor and a promissory note to receive an interest-free wedding loan of $7,100 over five years,” the report explained. “In the absence of a guarantor – who must be a state employee – a couple can use their government cash subsidy as collateral to secure a loan.”
Mir Mohammad Sadeghi, the head of the Central Bank’s Loan and Credit Department, said: “The Central Bank has provided all banks and financial institutions in the country with the latest lending standards and credit rules which require couples who apply for a wedding loan to either have one guarantor or put up their government cash subsidies as collateral.”
Mr. Sadeghi added: “It is possible that some banks have arbitrarily imposed more stringent credit rules, given that the number of couples applying for wedding loans have significantly increased in recent years. Banks naturally want to ensure that they get their money back. However, we have clarified that applicants for a wedding loan need to provide the bank with either their proof of employment or one guarantor who has a full-time job with the government.”
[Translated from Persian by Fardine Hamidi]