Car loan payment from Nov. 9

The Central Bank of Iran and the Ministry of Industries, Mines and Trade announced that starting next week, they will offer loans to both auto buyers and manufacturers.

The announcement indicates that starting November 9, buyers of Iranian-produced cars will be eligible for a loan of up to 80% of the purchase price, with a cap of 250 million rials, according to Eurasia Review. The Iranian auto industry has been facing serious challenges, with the demand for domestically produced cars falling by more than 12%. Similar government incentives are also being offered for the purchase of agricultural machinery, tractors and combines, though the total amount for those vehicles is higher considering the large initial payment needed. The loans are officially being offered at 16% interest rate and CBI will provide the funds to banks at 14%. Similar loans will be provided to manufacturers, but the cap on these loans has not been announced yet. Previous estimates put that amount in the hundreds of millions of dollars. The incentives appear to be part of the government’s initiatives to boost the automotive sector and combat the economic recession.

By Financial Tribune