Iran’s Mehr Bank Launches Groundbreaking No-Guarantor Loan Initiative for Women
In a significant move to bolster financial inclusion and economic empowerment, Iran’s Mehr Bank has unveiled a new “Women’s Savings Loan” program. This innovative, interest-free (Qard-al-Hassanah) financing scheme is designed specifically for women, including homemakers, working women, and female heads of households, and notably removes the traditional requirement for a financial guarantor.
A New Pathway to Financial Empowerment
The core objective of this government-backed initiative is to provide a reliable and accessible source of capital for women, encouraging a culture of savings while offering crucial financial support for entrepreneurial ventures and essential needs. By leveraging a unique credit-scoring system instead of guarantors, the program aims to break down long-standing barriers to credit access for women, thereby contributing to their socio-economic advancement and strengthening the role of women in the nation’s development.
How the Four-Tiered Loan Program Works
The loan is disbursed in four progressive stages, with the amount increasing as the borrower successfully repays each phase. The total available financing can reach up to 202 million tomans. The structure is as follows:
- Phase 1: 10 million tomans (24-month repayment)
- Phase 2: 36 million tomans (24-month repayment)
- Phase 3: 56 million tomans (36-month repayment)
- Phase 4: 100 million tomans (36-month repayment)
Access to each subsequent phase is contingent upon the full settlement of the previous loan.
Key Conditions for Eligibility
Prospective applicants must meet several straightforward criteria to participate:
- Open a dedicated “Women’s Savings” account at Mehr Bank.
- Commit to a minimum monthly deposit of 800,000 tomans into this account for at least four consecutive months.
- Maintain this monthly deposit throughout the entire loan period, even while repaying installments.
- Have no history of bounced checks or outstanding bank debt.
- Successfully pass the bank’s internal credit assessment.
The service fee for the loan is set at a low 4%, making it a highly affordable financing option. For a 100-million-toman final loan, the monthly installment would be approximately 3.03 million tomans, with a total repayment amount of around 108 million tomans.
Prioritizing Support for Female Heads of Households
Demonstrating a focused social support policy, the program offers expedited processing and potentially enhanced benefits for women who are officially recognized as heads of their households. This priority status can be confirmed by providing a formal letter from the local Governor’s Office (استانداری).
This initiative by Mehr Bank is presented as a strategic component of broader national efforts to improve living standards and foster sustainable economic growth by investing in the potential of half the population. It underscores a commitment to creating more equitable financial tools that align with the economic requirements of Iranian women.