Title: Landmark Financial Reform: Iran Expands Credit Access with No-Guarantor Loans
A New Era for Financial Inclusion
In a significant move to reshape the nation’s credit landscape, the Central Bank of the Islamic Republic of Iran has enacted a new bylaw, approved by the Cabinet and issued by the First Vice President. This directive, based on the Law for Financing Production and Infrastructure, marks a pivotal shift in banking policy, designed to broaden credit justice and integrate a wider segment of the population into the formal financial system.
Broadening the Definition of Collateral
The cornerstone of this reform is the expansion of acceptable bank collateral. For the first time, citizens can leverage a diverse portfolio of assets to secure loans, moving beyond traditional guarantees like property. The newly approved collateral includes:
- Monthly cash subsidies
- Justice Shares
- Life insurance policies
- The Central Bank’s Digital Rial
- Mobile phone SIM cards
- Retirement benefits and salaries
This list is part of a broader framework encompassing 35 types of physical and financial assets, signaling a modernized approach to personal finance.
A Coordinated National Framework
To ensure the integrity and smooth operation of this new system, a comprehensive digital registry—the Comprehensive Bank Collateral System—has been established. This platform will provide banks and regulatory bodies with real-time verification and tracking capabilities for all pledged assets. Furthermore, specific government institutions have been designated to oversee different asset classes, ensuring clear accountability and regulatory oversight.
Immediate Impact: Subsidies as a Gateway to Credit
A key and immediately relevant aspect of this reform is the facilitation of no-guarantor loans for subsidy recipients. This initiative allows individuals to access urgent loans of up to 200 million tomans without the need for a physical guarantor or post-dated checks. Loan repayments will be automatically deducted from the applicant’s monthly subsidy, simplifying the process and making credit more accessible for lower-income households.
Implementation and Public Guidance
While the bylaw is officially in force, the full operational rollout across the banking network is pending final technical and institutional coordination. Officials anticipate the system will be fully operational by the end of the current Iranian year (March 2025).
Authorities have issued a clear public advisory: citizens should await official announcements from the Central Bank or the Ministry of Welfare before engaging with any platforms for these new loan products. The public is strongly urged to rely solely on official and credible media sources for information to avoid potential misuse and to ensure a secure and transparent application process once the systems are live.
This strategic policy underscores a committed effort to foster economic empowerment and enhance financial mobility for all citizens.