Iran Expands Rural Social Safety Net with New Loan Scheme and Insurance Coverage
In a significant move to bolster rural development and social welfare, the head of Iran’s Social Security Fund for Farmers, Villagers, and Nomads has outlined extensive support mechanisms for the country’s rural population, including a new 50 million Toman loan program.
A Foundation for National Development
Hamed Ghader-Marzi, referencing official census data, highlighted that Iran’s rural population of over 20.7 million people, dispersed across more than 62,000 villages, forms a critical component of the national economy. He emphasized that rural development is a prerequisite for national development, noting that rural areas are custodians of 94% of the country’s surface water and soil resources, playing a vital role in ensuring food security.
A Pioneering Social Security Model
The Social Security Fund for Farmers, Villagers, and Nomads, established in 2004, represents a key pillar of Iran’s social welfare strategy. Ghader-Marzi detailed that the government subsidizes 70% of the insurance premium for members, contributing approximately 10.5 million Tomans annually per insured individual. To date, the fund has provided coverage for 3.4 million people, with over 2.2 million currently receiving pensions.
“All governments since 2004 have supported this fund,” Ghader-Marzi stated, underscoring the enduring national commitment to this initiative.
Transparency and Anti-Corruption Measures
The fund’s management was highlighted as a model of transparency within Iran’s pension system. Ghader-Marzi reported that over 75% of the fund’s assets are invested in the stock market, with plans to increase this further to enhance financial clarity. He firmly asserted that the fund operated with complete integrity in the past year, stating, “There was not a single Rial of corruption in the fund.”
Expansive Coverage and Targeted Support
The fund maintains a continuous presence across Iran’s vast geography through 1,555 agents, ensuring accessibility for the target population in all 62,000 villages and 1,440 cities.
In line with national policies to support families and vulnerable groups, the fund has extended comprehensive coverage to hundreds of thousands of citizens. This includes fully subsidized insurance for over 375,000 rural women with three or more children, 61,000 female-headed households in rural areas, and 55,000 households under the support of the Imam Khomeini Relief Foundation.
New Financial Support: 50 Million Toman Loans
A major new initiative announced is the rollout of a 50 million Toman loan program for fund members. Ghader-Marzi announced that starting immediately, all eligible farmers, villagers, and nomads can register for these interest-free loans through the fund’s local agencies.
“In this phase, we plan to provide these loans to 15,000 rural residents,” he said, marking a direct financial boost to rural communities and underscoring the government’s focus on enhancing rural livelihoods and economic participation.