Central Bank Mandate vs. Banking Practice: The Challenge of Securing Iran’s Marriage Loan
A significant gap has emerged between official regulations and on-the-ground banking practices concerning Iran’s state-mandated marriage loan program. While directives from the Central Bank of Iran (CBI) explicitly limit the number of guarantors required to one, numerous applicants report that banks are demanding up to six guarantors and additional financial instruments, creating a major hurdle for young couples.
Regulatory Clarity vs. Branch-Level Hurdles
The issue stems from the program’s design. The CBI, in line with the country’s Youth Population Growth Law, has issued clear circulars: banks are not permitted to request more than a single guarantor from applicants for the Qard-al-Hassan (interest-free) marriage and childbearing loans. The core principle is to facilitate access to these funds, making the process as straightforward as possible to support family formation.
Despite this, complaints from citizens across the country suggest a different reality. Applicants report facing long queues, subjective treatment, and demands that far exceed the legal requirements.
Voices from the Applicants
Citizens have shared their experiences, highlighting the scale of the problem:
- A applicant from Karaj’s Kamalshahr branch of Bank Refah reported that despite providing a retired guarantor who receives a 21 million Toman salary from the same bank, a second guarantor was demanded.
- Another applicant stated that Post Bank required six separate guarantors for the marriage loan.
- Others were told they needed four guarantors for a 200 million Toman loan, each with a minimum salary of 25 million Toman and no existing debt.
- One individual reported providing four guarantors, two certified checks, and two promissory notes for a 700 million Toman loan and has been waiting for two months without the funds being disbursed.
What was intended as a supportive measure has itself become a significant challenge for couples seeking to start their lives together.
High-Level Reaffirmation of the Rules
In response to these growing concerns, CBI Governor Mohammadreza Farzin has directly addressed the matter. He has called on the CEOs of all banks to ensure that the banking network adheres to the central bank’s circulars. He emphasized that for the payment of small loans and these specific marriage and childbearing loans, banks must operate with a maximum of one guarantor, alongside standard credit assessment procedures. Bank CEOs were instructed to directly monitor compliance across all their branches.
Adding to this, Alireza Qitassi, Secretary General of the Coordinating Council of State and Semi-State Banks, confirmed in a statement: “Based on the central bank’s circulars and the Youth Population Growth Law, banks are not authorized to ask for more than one guarantor from applicants for marriage and childbearing loans.” He stressed that requiring more than one guarantor is effectively “forbidden across the country,” clarifying that it is a mandated duty for banks to disburse these facilities with a maximum of one guarantor and one promissory note.
A Call for Enforcement
The persistence of these subjective banking practices, despite clear regulations and high-level directives, indicates a need for more stringent oversight and enforcement. There is a public call for serious intervention on this issue, including transparent communication regarding any disciplinary actions taken against non-compliant bank managers. Such measures are seen as essential to deter practices that obstruct couples from accessing the support they are entitled to by law.