Bank Melli Iran issues loans worth more than 2M

Business Materials 8 May 2019 19:24 (UTC +04:00)

Baku, Azerbaijan, May 8

By Elnur Baghishov – Trend:

Bank Melli Iran (National Bank of Iran) issued 2,033,000 loans worth 1,008 quadrillion rials (app. $24 billion) last Iranian year (started on March 21, 2019), Trend reports with reference to website of Bank Melli Iran.

Last year, Bank Melli Iran mostly issued consumer loans. As such, 961,000 loans worth 343.6 trillion rials (about $ 8.18 billion) were issued.

As reported, in the last Iranian year, the bank issued 100,211 loans worth $77.4 trillion rials (app. $1.84 billion) to businessmen in the form of mudarabah (a partnership or trust financing contract in Islamic banking where one partner gives money to another for investing in a commercial enterprise), and 19,916 debt purchase loans worth 40.2 trillion rials (app. $958 million) to economic entities.

In addition, the bank issued 932,743 qard al-hasan loans (interest-free loan in Islamic banking extended by a lender to a borrower on the basis of benevolence, i.e. extended to people in need, for a specified period of time) worth 59.8 trillion rials (app. $1.42 billion) and 108,464 loans worth 333 trillion rials (app. $7.93 billion) within the framework of investment partnerships.

Bank Melli Iran also issued 349,986 ju'alah loans (a contract in Islamic bank in which a certain amount of money is rewarded to the borrower for the completion of any predetermined task or service) worth 87.3 trillion rials (app. $2.07 billion) and 402 property loan agreements worth 1.55 trillion rials (app. $36.9 million).

According to the news report, the bank issued 59,469 murabaha loans (a type of financing in Islamic banking, where the price is marked-up in exchange for allowing the buyer to pay over time, for example, with monthly payments) worth 50.6 trillion rials (app. $1.2 billion) and 1,022 suflah loans (equivalent to no interest loans) worth 19.2 trillion rials’ (app. $457 million).