Iran’s Central Bank Unveils New Framework for Interest-Free Employment Loans
In a strategic move to bolster domestic employment and support the national economy, the Central Bank of the Islamic Republic of Iran has issued a new directive to commercial banks, detailing the conditions for granting repeat interest-free (Qard-al-Hasanah) employment and home-based business loans.
Key Conditions for Loan Eligibility
The official circular, signed by senior Central Bank officials, outlines a clear set of criteria for applicants seeking a second loan. A pivotal requirement is that at least three years must have passed since the recipient received their previous employment loan. Furthermore, the original business venture must have proven to be sustainable and stable.
Crucially, the repeat financing is directly tied to job creation. Applicants must demonstrate that they will hire new staff, exceeding their previous number of employees. For each new position created, the business becomes eligible for an individual loan amount up to the ceiling set for the current year.
Financial Ceilings and Targeted Sectors
The directive specifies substantial financial support for various business models. For the year 1404 (2025/2026), the individual loan ceiling for standard employment and home-based businesses is set at 2 billion Rials, with a maximum repayment period of 60 months. Approved professions, as designated by the Monetary and Credit Commission, can qualify for up to 3.5 billion Rials.
In a significant push to foster innovation, knowledge-based, creative, and technology-focused companies are eligible for even higher amounts. These enterprises can access up to 9 billion Rials in employment loans, with developmental and start-up projects qualifying for up to 30 billion Rials, and even 50 billion Rials for projects aimed at attracting elite professionals.
Strengthening Economic Resilience
This initiative underscores the government’s continued commitment to strengthening the economic foundation of the society by empowering entrepreneurs and small businesses. By channeling financial resources into sustainable job creation and high-value knowledge-based sectors, the policy aims to stimulate economic growth from the ground up. The Central Bank has mandated that all lending institutions adhere strictly to the regulations, including conducting proper credit assessments, to ensure the program’s integrity and effectiveness.