Title: New Financial Instrument: Justice Shares Now Serve as Collateral for Bank Loans
In a move aimed at enhancing financial inclusion and providing immediate liquidity, eligible citizens can now utilize their Justice Shares to obtain credit cards and loans. This initiative, which became operational on February 14, 2021, is available to both direct and indirect shareholders, streamlining access to credit facilities.
A Digital-First Financial Solution
The process has been designed for maximum convenience, allowing applicants to complete registration and receive their credit cards entirely online, eliminating the need for physical visits to bank branches. This service is currently offered exclusively through two state-owned banks, Bank Melli and Bank Tejarat.
This financial instrument is positioned to play a significant role in meeting the short-term financial needs and liquidity requirements of families, providing a readily available source of credit backed by their shareholding.
Eligibility and Application Pathways
Prospective applicants must meet specific criteria, which differ slightly depending on whether they are direct or indirect shareholders.
For Direct Shareholders:
- Registration and verification on the Sejam system is mandatory.
- The supervising broker for the shares must be a broker affiliated with either Bank Melli or Bank Tejarat.
- The Justice Shares must not have been previously sold.
For Indirect Shareholders:
- Registration and verification on the Sejam system is required.
- The trading symbol for the relevant provincial investment company must be active.
- The individual must not be subject to any trading bans or account freezes.
- Registration on the respective bank’s brokerage portal and completion of the process to change the supervising broker is necessary.
Streamlined Application Process
Once registered with the appropriate bank’s brokerage, applicants can submit their credit card request through designated mobile applications. A tracking code is provided upon submission, allowing individuals to monitor the status of their application and card activation directly via the app. Officials recommend verifying all share information with the respective bank before initiating the application.
Key Considerations for Shareholders
It is crucial for beneficiaries to understand the terms associated with this financial product:
- The Justice Shares are held as collateral by the bank for the duration of the credit line.
- In the event of loan default, the bank is authorized to sell the shares to recover the debt.
- The credit card is issued exclusively to registered and eligible beneficiaries.
- Regular monitoring of the card’s status and outstanding balance is strongly advised to maintain financial health.
This initiative represents a significant step in leveraging national shareholding schemes to provide tangible financial benefits directly to citizens, supporting household economic stability.
