Title: Iran’s Mellal Credit Institute Launches Low-Fee “Navid-e Mellal” Loan Scheme
Introduction
In a move aimed at expanding financial support for its customers, Iran’s Mellal Credit Institute has introduced a new loan program titled “Navid-e Mellal.” This initiative is designed to facilitate public access to banking resources through a long-term repayment plan and a notably low fee rate, positioning it as a viable option for those seeking affordable credit facilities within the country’s banking system.
Eligibility and Registration Criteria
Prospective applicants must meet several key conditions to qualify for the Navid-e Mellal loan. Primary requirements include holding an active Qarz-ol-Hasaneh (interest-free) account with the Mellal Institute and having maintained a suitable average balance in that account for a minimum of four months.
Further essential criteria are:
- A clean financial record with no bounced cheques or outstanding debts within the national banking network.
- Successful completion of the institute’s credit assessment process.
- Submission of valid identification documents.
- Filling out the official loan application form at any Mellal branch.
Loan Structure and Financial Terms
The loan is disbursed as a cash payment, with amounts ranging from a minimum of 5 million Tomans to a maximum of 300 million Tomans for individuals. The final sum is determined based on the applicant’s account balance history and their resulting credit score.
A standout feature of the scheme is its low cost. The fee rate for this facility is set at just 4 percent. For the maximum individual loan of 300 million Tomans over a 60-month repayment period, the total fee amounts to approximately 36 million Tomans, resulting in a total repayment sum of 336 million Tomans.
Collateral Requirements
The collateral policy is tailored to the applicant’s credit rating and legal status:
- For individuals, loans up to 50 million Tomans require no guarantor and are granted based solely on a positive credit assessment. For amounts between 50 million and 300 million Tomans, providing one official guarantor is mandatory.
- For legal entities, loans up to 500 million Tomans do not require a guarantor. For amounts exceeding this threshold, one valid guarantor is necessary.
Flexible Repayment Options
The scheme offers a maximum repayment period of 60 months (5 years), providing borrowers with a manageable long-term financial plan. However, applicants are also afforded the flexibility to opt for a shorter repayment duration based on their individual financial capacity.