Housing official: Two Iranian banks' interest rates unlawful
Azerbaijan, Baku, July 30/ Trend M.Moezzi/
An official with Iran's Housing Foundation said two banks are charging applicants wishing to purchase rural housing loans as much as four times the allowed interest rate.
Azizollah Mahdian, the Housing Foundation's deputy for rural housing renovation, told Fars news agency that the Melli and Saderat banks are charging applicants 15 to 20 per cent interest on the loans they get for rural housing.
Other banks' interest rates on these loans is five per cent as directed by the Central Bank of Iran said Mr. Mahdian.
The Melli and Saderat Banks contend the Central Bank's circular on the topic isn't clear and it has to make an announcement to clarify the issue before then can lower their interest rates.
The Central Bank, meanwhile, has yet to issue a clarification so the two banks continue to charge their customers the much higher interest rate.