Title: New Auto Financing Initiative Launches for Iranian Educators
Introduction
A new automotive loan program has been introduced specifically for the nation’s teaching community. The initiative, designed to provide access to vehicle ownership, offers substantial financing with a structured repayment plan, reflecting ongoing efforts to support public sector employees.
Loan Structure and Terms
The financing is set at a nominal value of 700 million tomans, to be repaid over an 84-month period. The nominal interest rate for the loan is 18 percent. Throughout the repayment term, the vehicle’s ownership document will remain as a lien with the bank.
Total Repayment Cost
Over the full duration of the loan, the total repayment amount reaches approximately 1.2 billion tomans. Of this sum, over 530 million tomans are allocated to interest and associated financial costs, a standard component of long-term financing agreements.
Eligibility and Registration Process
Eligible educators must complete a multi-step registration process. This includes credit validation, obtaining an official administrative referral, and providing two formal guarantors. Following application submission, the bank’s approval and chassis number allocation are estimated to take between three to four weeks.
Vehicle Selection Guidelines
The program stipulates that vehicle purchases are restricted to models produced by Iran Khodro and Saipa, supporting domestic automotive manufacturers. As per the terms, the vehicle’s title remains non-transferable until the final installment is settled.
Monthly Financial Commitment
The monthly installment for this loan is calculated to be approximately 14.7 million tomans. This financial commitment is a key consideration for applicants as they assess their long-term budgets.
Long-Term Financial Planning
Recipients of this financing will manage this repayment schedule over a seven-year period. As with any long-term asset financing, factors such as currency value fluctuations and vehicle depreciation are standard considerations that borrowers evaluate regarding the asset’s value over time.