Unsecured loan subject to eligibility

An Economy Ministry official said the new unsecured loan scheme is not comprehensive.
Abbas Hosseini, deputy in the ministry in charge of banks, insurance and public enterprises, said the new microcredit program is only available to those who are eligible.
Previously, the ministry ordered all banks to lend to employees and pensioners without requiring collateral or guarantors.
“Eliminating guarantors is replacing them with a credibility assessment system. It is not that all employees are eligible and can apply,” Hosseini said, as quoted by the ministry’s news site, shada.ir.
His explanation came following reports that people rushed to banks to apply for loans soon after the ministry announced the collateral-free loan scheme.
Earlier in the week, Ehsan Khandouzi, the minister, ordered all banks to accept the microloan application without collateral. He gave the instruction in a letter to the CEOs of 13 state-owned banks and also asked bank inspection departments to visit branches to ensure banks were complying.
Under the new rule, pensioners and employees can borrow up to 1 billion rials without the need for collateral.
Instead of collateral, employees must present their salary certificate for loans up to 500,000 million rials. For loans above this amount, they must submit a check or promissory note.
Hosseini said salaried employees with a good credit rating can use the financial facilities without collateral.
Despite the Ministry of Economy’s emphasis on assessing the credibility of loans, there are no clear criteria to inform borrowers.
Earlier, the Central Bank of Iran said that the basis for credibility assessment will vary and may include a wide range of factors regarding the financial performance of borrowers, including the value and history of previous loans, records of applicants’ check transactions and even their behavior towards paying traffic fines and utility bills.
As part of the credibility assessment plan, banks will limit access for deadbeat customers even if they have provided sufficient collateral but failed to settle their debt in a timely manner in the past.
The regulator has designed a platform for online investigations into their credibility on the mycredit.ir website. The platform has data on 44 million Iranian ID card holders, namely the credibility status of 34 million bank customers.