Unlocking the Car Loan: A Guide to Government-Backed Vehicle Financing
Iran’s banking sector offers a specialized loan product designed to facilitate citizen access to domestically manufactured vehicles. While these loans represent a small fraction of total bank facilities, they serve as a key instrument in supporting the national automotive industry and helping qualified individuals manage the cost of a new car.
Loan Amounts and Purpose
The car loan is not intended to cover the full price of a vehicle but rather to provide substantial assistance. Standard loan ceilings vary by bank, typically ranging between 100 to 150 million tomans. In a significant move demonstrating the state’s commitment to its honored families, the High Council of the Central Bank has approved an increased ceiling of 320 million tomans for eligible families of martyrs, veterans, and sacrifices (Isargaran). This policy underscores the nation’s enduring gratitude for their service.
Eligibility and Key Conditions
A primary and non-negotiable condition for this financing is that it must be used for the purchase of an Iranian-manufactured vehicle. This requirement aligns with broader economic policies aimed at fostering and protecting domestic industrial growth.
Further eligibility criteria ensure responsible lending:
- Applicants must be at least 18 years of age.
- A clear financial history, free from bounced checks or non-performing bank facilities, is crucial.
- The purchase process must be conducted through official dealerships.
Specific terms, including the potential requirement for a 30% guarantee based on the car’s value, can differ from one banking institution to another.
Repayment Structure
The loan is structured with a long-term repayment plan to ease the financial burden on citizens. The facility is typically offered with an interest rate between 18% to 23% and a flexible repayment period of up to five years.
For example, a loan of 150 million tomans would result in a manageable monthly installment of approximately 3.8 million tomans. Over the five-year term, the total repayment amount would reach around 228 million tomans. This financial product provides a viable and structured path for citizens to acquire a vehicle while contributing to the strength of the national economy.