Iran’s Automotive Financing: A Guide to State-Supported Car Loans for September 2025
In a move to support domestic industry and facilitate public access to vehicles, Iran’s banking system offers specific car purchase loans. However, these facilities represent a small fraction of total bank lending, making their acquisition competitive and subject to stringent banking criteria.
Loan Purpose and Focus on Domestic Production
A central and non-negotiable condition for this financial product is that it is exclusively for the purchase of domestically manufactured vehicles. This policy underscores a commitment to bolstering national industries and supporting local manufacturing. The loan is designed to cover a portion of the total vehicle cost, not its full price, requiring buyers to provide a significant down payment.
Loan Amounts and Eligibility
The maximum loan amount has been set at 320 million tomans. It is important to note that individual banks have discretion within this ceiling, with some institutions offering amounts around 100 million tomans and others up to 150 million tomans.
In a special provision, the Central Bank’s High Council has approved an enhanced loan ceiling of 320 million tomans for specific groups, including the families of martyrs, veterans, and sacrifices (Isargaran), recognizing their service to the nation.
Key Eligibility Requirements
Prospective applicants must meet several criteria:
- Be at least 18 years of age.
- Provide proof of purchase through official domestic dealerships.
- Possess a clean financial record, as a history of bounced checks or non-performing bank loans can disqualify an application.
- Some banks may require a collateral deposit of up to 30% of the vehicle’s value.
Repayment Structure
The loans are structured with an interest rate typically between 18% to 23% and must be repaid over a maximum period of five years. For example, a loan of 150 million tomans would result in a monthly installment of approximately 3.8 million tomans. Over the five-year term, the total repayment amount would be around 228 million tomans.