Executive instructions for granting micro-facilities were communicated to the banking network
According to Iran Economist’s report from Central Bank, in this directive, the amount of micro-facilities is set at 2 billion Rials. Also, in the aforementioned instruction, while listing the list of guarantees and securities that can be obtained from the applicants for receiving micro-facilities, it is stipulated that micro-facilities should be granted to applicants with a history and credit score based on validation, in exchange for obtaining a maximum of two collaterals.
One of the plans of the Central Bank of the Islamic Republic of Iran this year is to facilitate the access of members of the society to monetary and banking services, and in other words, to develop financial inclusion. For this purpose, various measures have been taken so far. Among other things, with the notification of the “Instructions on the Limits and How to Provide Offline Basic Services to Clients in Banks and Non-Banking Credit Institutions”, the necessary conditions for providing offline services by banks and non-banking credit institutions to individuals were provided.
Also, with the aim of increasing the security in the exchange of banking information and facilitating the use of electronic signature certificates by members of the society, the directive on “electronic signature certificates” was promulgated at the end of last year, whereby banks and non-bank credit institutions were allowed to accept signature certificates. Electronic documents issued by intermediate centers under the supervision of the government origin center, provide banking services to the holders of the above-mentioned certificates.
In addition, with the cooperation of the relevant executive bodies, the “electronic promissory note” project was used in selected banks, through which all stages of purchase, issuance and endorsement of promissory notes can be carried out online in the integrated management system of promissory notes and electronic bills. is done
The full text of the executive instructions for granting micro-facilities
In order to facilitate the access of different sections of the society to the micro-facilities that can be granted by the country’s banking network, the “executive instructions for granting micro-facilities”, which will be called “instructions” from now on, are compiled as follows:
Chapter 1: Definitions
Article 1- In this instruction, the following headings are used instead of related expressions:
1-1- Central Bank: Central Bank of the Islamic Republic of Iran;
1-2- Credit institution: a bank or a non-bank credit institution established by law or with the permission of the central bank and under the supervision of that bank;
1-3- Microfacilities: Riyal facilities with non-commercial purposes and in order to meet the essential needs of individuals, which are given to the customer within the framework of the conditions stipulated in this instruction.
1-4- Customer: a natural person applying to receive micro-facilities from a credit institution;
1-5- Validation: the process of determining the credit score of individuals using quantitative and qualitative models;
1-6- Credit score: a quantitative index that is calculated based on a certain methodology and approved by the risk committee of the credit institution and approved by the board of directors of the credit institution and indicates the probability of non-payment on time (default) by individuals.
1-7- Internal credit rating: the index obtained from the internal credit rating system of the credit institution, which indicates the creditworthiness of the customer.
8-1- Credit limit: the maximum credit that the credit institution allocates to the customer in the form of micro-facilities.
Chapter Two: Limits and how to grant micro-facilities
Article 2- From the date of notification of this directive, the credit institution is obliged to grant micro-facilities based on the conditions, credit score, internal credit rating and customer’s credit limit in the form of installment sale contracts, lease with the condition of ownership, Murabaha, Jaala and loan to the customer. to pay
Article 3- The maximum amount of micro-riyal facilities that can be paid to each customer at the level of all credit institutions is two billion rials (2,000,000,000 rials).
Article 4- Rules, conditions and other executive details related to the way of granting micro-facilities, such as the period and method of repayment of installments or settlement of the facility, the method of calculating interest, fee, late payment obligation, as the case may be, subject to the relevant notified regulations, including the provisions of the executive instructions. Contracts and requirements are stipulated in the uniform forms of contracts for granting bank facilities.
Chapter Three: Validation and guarantees
Article 5- The credit institution is obliged to inquire about the history of bounced checks and non-current debts of the customer before granting the facility.
Note – It is prohibited to grant micro-facilities to a customer with a returned check or a non-current debt until the adverse effect of the returned check is removed and the assignment of the non-current debt is determined according to the relevant notified rules.
Article 6- In granting micro-facilities to a customer with a history and credit score, the credit institution can provide the amount of micro-facilities granted and the degree of liquidity of collaterals and guarantees, in accordance with the legal obligations and related regulations as well as the conditions contained in this instruction. to receive maximum two items of guarantees and deeds as described in the following examples from the facility recipient or guarantor.
6-1- Commercial documents such as customer’s check or promissory note;
2-6- Debt bonds, including bonds accepted in the capital market and others;
6-3- Shares of companies admitted to the stock exchange, including equity shares;
4-6- investment units of investment funds tradable on the stock exchange;
5-6- Check or promissory note by guarantor;
6-6- Tangible property with customary value such as cars, jewelry or gold artifacts;
6- 7- Individual account subsidy;
8-6- Certificate of deduction from salary by the customer or guarantor;
6-9- The guarantee of a business person with a business license who has an economic activity at the time of granting the facility;
6-10- In rural areas, the guarantee of a resident of the village, whose eligibility and qualification is confirmed by the Islamic Council of the village, is attached to the seal of the Islamic Council of the village;
6-11- permanent registered SIM card owned by the customer;
6-12- For villagers, farmers, traditional herders and nomads, cattle grazing license, agricultural well license, agricultural land ownership document, chain guarantee;
6-13- The guarantee issued by the company where the customer is employed, which includes guaranteeing the borrower’s debt;
6-14- binding contract
6- 15- Other guarantees according to the credit score of the customer and the recognition of the credit institution.
Article 7- In granting micro-facilities to a customer with no history and credit score, the credit institution can, according to the customer’s income level and ability to repay the installments by him, by obtaining a maximum of two of the bonds and guarantees stipulated in Article (6) for the first time up to the limit Grant one billion Rials of microfacilities at the level of all credit institutions.
Chapter 4: Other requirements
Article 8- The credit institution is obliged to electronicize the contracts for granting banking facilities within the framework announced by the central bank and provide a copy of it to the customer.
Article 9- The provisions of this directive have been compiled in order to facilitate and create uniformity in the process of granting micro-facilities, and it does not create rights and obligations for the customer and the credit institution, and the granting of facilities is done based on the conditions, resources and priorities of the credit institution.
Article 10- It is prohibited to receive cash collateral from the customer in the form of various types of deposits in granting micro-facilities.
Article 11- It is prohibited to use other facility contracts, except for those mentioned in this instruction, in order to grant micro-facilities. The credit institution is obliged to apply the restrictions stipulated in this directive appropriately in the relevant control and monitoring systems.
Article 12- Marriage loan facilities are subject to the provisions of the relevant laws and regulations.
Article 13- Housing buying and selling facility is subject to its own rules and regulations.
Article 14- Other requirements regarding the granting of micro-facilities, with the exception of those explicitly mentioned in this instruction, are subject to the relevant laws and regulations.
“Executive instructions for granting micro-facilities” consisting of 14 articles and one note was approved in the second session of the Central Bank’s Credit Institutions Regulation and Supervision Commission on June 28, 1401, and is effective from the date of notification.