Title: Iran Expands Self-Employment Loan Program to 200 Million Tomans to Boost Grassroots Businesses
In a significant move to bolster domestic employment and support small-scale entrepreneurship, the Iranian government has announced a substantial increase in the ceiling for its self-employment loans. The initiative is a key component of the state’s broader support package designed to foster private sector job creation.
Key Policy Enhancement
The government spokesperson confirmed that the maximum amount for self-employment loans has been raised from 150 million to 200 million Tomans. This policy is strategically aimed at empowering specific segments of the population to establish their own sustainable small or home-based businesses, thereby stimulating local economies and reducing dependency on formal employment.
Who Qualifies for the Loan?
The loan program is targeted to provide opportunities for specific groups within society. The primary beneficiaries include:
- Young job seekers.
- Female-headed households.
- University graduates.
- Recipients of support from the Imam Khomeini Relief Committee or the State Welfare Organization.
- Individuals residing in underdeveloped regions.
This targeted approach ensures that the financial support reaches those with the greatest need and potential to contribute to the nation’s economic resilience.
Loan Structure and Repayment Terms
The self-employment loan is structured as a Qard-al-Hassanah (interest-free loan) with a low, administrative profit rate of 4%. The repayment period is flexible, typically ranging from three to seven years, allowing for manageable financial planning for new entrepreneurs.
To further ease the burden on new businesses, the loan includes a grace period of six months to one year before the first installment is due. This provides crucial time for the business to become operational and start generating revenue. Collateral for the loan can be provided through a reliable guarantor, property deeds, or other forms of security, depending on the specific bank and loan amount.
This expansion of the self-employment loan scheme underscores the government’s ongoing commitment to creating sustainable livelihoods and empowering citizens through practical economic support.