Iran Unveils New Credit-Based Scheme to Support Young Couples and National Industry
In a significant shift from its current policy, Iran has proposed a new initiative to replace the direct marriage loan with a dedicated credit card for purchasing domestically manufactured home appliances. This move aims to address long-standing challenges while bolstering the national economy.
A Legacy of Support for Young Families
Since the implementation of the Youthful Population Law, substantial financial support has been provided to facilitate marriage for the nation’s youth. Official reports indicate that over 650 trillion tomans in marriage loans have been disbursed to more than 3.5 million citizens. This policy was designed to offer crucial support to young families and ease the financial pathway to marriage, with over 87% of applicants successfully receiving these facilities.
Addressing Implementation Challenges
A primary challenge in recent years has been the lengthy waiting list for these loans, which placed psychological and financial strain on young couples. Approximately 13% of applicants have remained on this waiting list, highlighting a bottleneck in the system that the new plan seeks to resolve.
The New Credit Card Initiative
To tackle this issue, the Central Bank of Iran has introduced a pioneering plan. Instead of a direct cash loan, eligible couples will receive a specialized credit card. This card is designed exclusively for the purchase of Iranian-made home appliances. The core objectives are twofold: to streamline the process for couples and to channel interest-free loan resources into supporting national production and providing essential goods for new households.
Key Benefits of the New System
The proposed scheme offers several advantages over the previous model:
- Support for National Production: By directing spending towards Iranian home appliances, the plan provides a direct economic boost to domestic manufacturers.
- Reduced Banking Pressure: It alleviates the financial strain on the banking network caused by large-scale cash payouts.
- Streamlined Process: The new system is designed to expedite access for couples, effectively eliminating the long waiting periods.
- Targeted Assistance: It ensures resources are used for their intended purpose—furnishing homes and establishing new families.
Next Steps and National Impact
The credit card proposal is currently under review by the Central Bank and the Islamic Consultative Assembly (Parliament). Pending the resolution of any legal and executive considerations, the initiative could be launched as early as the current Iranian month of Azar (November/December 2023).
This shift from a cash loan to a targeted credit system is seen as a strategic measure to more effectively support young couples, strengthen the domestic market, and contribute to national economic prosperity. The initiative is expected to have a positive impact not only on new families but also on the broader landscape of Iranian industry and production.