Changing the method of loan payment and collateral

According to Iran Economist, the people’s representatives in the parliament mandated the central bank to facilitate the process of granting micro-facilities, promote and expand the tradition of Qarz al-Hasaneh and legitimize the activities of Qarz al-Hasaneh funds by the end of the first year of the implementation of this law.

The representatives in the public meeting this morning (Saturday, October 8) of the Islamic Council during the review of the details of the Seventh Development Program Bill, with paragraph (x) of Article 9 of this bill with 149 votes in favor, 44 votes against and 12 abstentions out of a total of 220 representatives present. They agreed in the meeting.

According to clause (x) of article 9 of the said bill; In order to facilitate the process of granting micro-facilities, the central bank is obliged to promote and expand the tradition of Qarz al-Hasna and legalize the activities of Qarz al-Hasna funds until the end of the first year of the implementation of this law:

1- Facilitate and speed up the validation system and the product pledge model (Kargoshai Bank experience).

2- To prepare executive instructions for the establishment and operation of Qarz al-Hasna funds with the legal development of Qarz al-Hasna funds and approve them by the Money and Credit Council. The central bank can entrust the supervision of Qarz al-Hasna funds within the framework approved by the Monetary and Credit Council to Qarz al-Hasna banks or Islamic Economic Organization of Iran or centers of Qarz al-Hasna funds.

Note- The rules for the establishment and operation of Qarz al-Hasna funds are approved by the Money and Credit Council.