Iran to increase housing loan

BAKU, Azerbaijan, Jan.14

Trend:

The Iranian government has requested the Monetary and Credit Council to increase the ceiling for housing loans said the Minister of Road and Urban Development.

"Raising the ceiling on housing loans is the responsibility of the Monetary and Credit Council and we have sent this request to the council. The Central Bank of Iran considers whether people can afford loan repayments," said Mohammad Eslami, Trend reports citing Tasnim News Agency.

"The National Housing Action Plan is having progress and has been welcomed by the people, considering the data systems in the Ministry of Cooperatives, Labour, and Social Welfare we have a good data bank that could be helpful to analyze (applicants)," he said.

"In the first and second phases of the plan 1.8 million individuals have applied for the National Housing Action Plan and so far 436,000 applicants were qualified that have been covered for the housing project. About 131,000 individuals have applied for housing in 183 cities in the third phase of the National Housing Action Plan since the third phase started on January 7. The data analysis would identify the real application demands and qualified candidates would have housing units," he added.

Eslami went on to say that the defined mechanisms and executive plans could create a sustainable process for housing construction for the target society and people could be assured to become house owners.

"The Ministry of Road and Urban Development seeks to set proper regulations with the Parliament's help to prevent unknown cash flow toward the housing market that affected the increase of prices. Housing is a commodity that people need and the unknown investment flow should move to other markets, these investments would cause turbulence in the housing market," he noted.

The National Housing Action Plan started in August 2019 to provide affordable houses to Iranians.