Iranian Banks Grant 22.7% of Loans to Households

According to SAEDNEWS, Recent figures released by the Central Bank of Iran (CBI) reveal a robust increase in loan disbursements by both state and private banks during the period from April to July. The total loans granted to businesses, industries, and households reached an impressive 16,957 trillion rials, equivalent to approximately $28.7 billion. This marks a remarkable growth of 20.6% compared to the same period in 2023.

Breaking down the loan distribution, small loans—defined as those below 3 billion rials (or about $5,000)—accounted for 24.7% of the total loans. Meanwhile, loans directed towards households amounted to 3,672.2 trillion rials, with 1,429 trillion rials specifically allocated for the purchase of personal appliances, highlighting a clear consumer demand for household goods.

The banking sector has also played a vital role in supporting business operations. In the same timeframe, working capital loans granted to all businesses in Iran reached over 10,035 trillion rials. Notably, the mining and manufacturing sectors received a substantial portion of this financing, capturing 44.6% of the total loans.

The CBI further reported that loans extended to the mining and manufacturing sectors during the four-month period exceeded 5,202 trillion rials (approximately $8.8 billion), signaling a strong commitment to bolstering these critical areas of the Iranian economy.

These positive trends in lending reflect an encouraging sign of economic activity and resilience within the Iranian banking system, as businesses and households continue to seek financial support amid various challenges. As Iran navigates its economic landscape, the focus on both small-scale loans and substantial support for vital industries appears to be a strategic approach to foster growth and stability.