Title: New 400 Million Toman Housing Loans to Support Rural Development and National Housing Initiative
Introduction
In a significant move to bolster rural infrastructure and support the National Housing Movement, a new wave of subsidized housing loans is set to be distributed to eligible households across Iran. The initiative underscores a continued commitment to rural development and economic resilience.
Loan Increase to Boost Rural Housing
Starting in the coming month, the payment process for 400 million Toman rural housing loans will commence. This represents a substantial increase from the previous 350 million Toman facility and marks a major step forward in the government’s plan to reinforce and modernize rural housing units. This policy is widely seen as a key driver for rural development and a strategic measure to encourage reverse migration from cities to villages.
Overcoming Banking Sector Challenges
The rollout of these loans comes amid a broader context of managing non-performing loans (NPLs) within the banking system. Financial reports indicate that the specialized Bank Maskan, a leading institution in providing housing facilities, held approximately 20.7 thousand billion Tomans in NPLs by the end of the last Iranian year. System-wide, the total NPLs across 26 reviewed banks and institutions stood at roughly 779 thousand billion Tomans.
Despite these financial challenges, which can impact a bank’s capacity to issue new facilities, necessary approvals for the new rural loan package have been successfully secured from the Ministry of Roads and Urban Development and specialized committees of the government. This demonstrates a coordinated effort to ensure the program’s viability and its alignment with national economic goals.
A Pillar of National Development
The renovation of rural housing is a cornerstone of the country’s development strategy. The increase in loan values—from 200 million Tomans to 350 million Tomans last year, and now to 400 million Tomans—has already created a notable surge in reinforcement activities. Furthermore, the Supreme Housing Council has set an ambitious target of renovating over 200,000 rural housing units, a goal that significantly contributes to the objectives of the National Housing Movement.
This financial support package is a clear reflection of the priority placed on enhancing living standards in rural areas and strengthening the nation’s housing infrastructure for a more prosperous future.
