Iran’s REFAH Bank Launches Major Financial Initiative to Support Pensioners and Salaried Employees
In a significant move to bolster household purchasing power and reinforce support for domestic production, REFAH Bank has introduced a substantial new financial facility. The initiative, a 500 million Toman loan, is specifically designed for pensioners and salaried employees, offering a no-guarantor requirement and a remarkably low 4% profit rate.
A New Financial Instrument for Economic Empowerment
At the core of this program is the innovative “Refahi Card,” a welfare card linked to GAM securities. This card provides a modern mechanism for eligible individuals to make installment purchases of essential and durable goods from a network of pre-approved stores partnered with the bank. The repayment period for any purchases made is set at 24 months, making it a manageable financial tool for its target demographic, which includes Social Security pensioners, workers, and employees who receive their salaries through REFAH Bank.
Strategic Focus on Domestic Production
A central pillar of this initiative is its explicit design to champion Iranian-made goods. Holders of the Refahi Card are directed to use it exclusively at contracted stores that supply domestically produced commodities. This strategic funneling of financial resources is intended to directly strengthen national industries and stimulate the local economy. REFAH Bank will provide a full list of authorized retailers upon card issuance.
Key Features and Accessibility
The program is structured with broad accessibility in mind, featuring clear and favorable terms:
- Credit Limit: Ranges from 100 million Rials to 5 billion Rials.
- Profit Rate: A low 4%.
- Repayment: A 24-month period.
- Guarantor: No guarantor is required.
This initiative is primarily focused on providing economic support to retired and working-class households, as well as lower-income segments of society, facilitating their access to necessary goods.
A Model for Sustainable Economic Development
The financial architecture of the Refahi Card is engineered to be non-inflationary and to prevent liquidity imbalances. By utilizing GAM securities for debt settlement, the program generates stable liquidity for accepting businesses. This approach not only aids household budgets but also enhances the efficiency of production units and fortifies the cycle of domestic manufacturing, contributing to the nation’s overarching economic development goals.
Aligning with Modern Banking Trends
The launch of the Refahi Card is part of REFAH Bank’s broader shift towards advanced electronic banking services, aiming to reduce the need for in-branch visits. The bank has further streamlined the process by offering online pre-registration capabilities for interested applicants.
Prospective applicants are encouraged to visit designated REFAH Bank branches for more information and to submit their requests for the Refahi Card.