The dream that the government has seen for the loan
Qarz Al-Hosna loan fee is currently calculated based on the annual debt balance. If someone takes a loan of 100 million, he pays a four percent fee on the first installment, but when the first year is over, the bank charges a new four percent fee on the balance of the facility!
Qarzul Hosna loan will soon gain more respect and prestige among people. The Central Bank of Ardibehesht this year increased the limit of payment of facilities to ordinary people in the form of Qarz Al-Hasneh loans up to 300 million tomans. At that time, it was announced that the applicants will have up to five years to repay the Qarz Al-Hasna loan with a four percent fee.
The payment conditions of Qarz Al-Hasna loan were changed last week with the insistence and follow-up of the Jurisprudence Council, and in case of final approval by the Money and Credit Council, the applicants, most of whom are young couples and usually get marriage facilities or childbearing loans, will pay smaller installments. Some sources claim that at the end of this process, Qarz Al-Hosna may be converted from a low-interest loan to an interest-free loan.
What is Qarz Al-Hasna loan?
Qarz Al-Hosna loan is one of the most popular types of bank facilities, because at the time of repayment, at least in appearance, interest is not accrued and the customer only pays a fee for the operational costs of the bank and financial institutions. Qarz Al-Hosna loan fee is 4%, which is not comparable with 23% interest of other facilities.
Loan resources of Qarzul Hosna are provided by the people themselves. A group of jurists who have doubts about bank interest, due to the recommendations and orders of elders and religious scholars regarding the importance of lending to others, turn a blind eye to bank deposit interest and instead go to Qarz Al-Hasna funds under the supervision of the banking system. Interest is not accrued on Qarz Al-Hasna deposits. Depositors are aware of this and consciously decide to use their capital for good purposes, such as facilitating the marriage of young couples or untying the work of patients in need of medical treatment.
Marriage loan, childbearing loan, education grant loan and medical loan are the most important types of Qarz Al-Hasna facilities. Resalat Bank and Mehr Bank of Iran specialize in the issue of Qarz-ul-Hosna, but other banks are also required by law to pay Qarz-ul-Hosna for marriage and childbearing. This category of loans is called an assignment loan, and in case of bank violations, the supervisory body can investigate the matter and even prosecute the violators.
In 1402, Qarz Al-Hosna loan can be paid to natural persons up to a maximum amount of 300 million tomans. Last year this number was 200 million Tomans. Last year, legal entities, small businesses and knowledge-based companies could take a maximum of 500 million Qarz Al-Hosna loans, which was increased to 750 million Tomans by the Central Bank’s decision in mid-April 1402.
Qarzul Hosna loan is paid individually with a maximum repayment period of five years, equivalent to 60 months. Some banks and funds consider the loan repayment period of 36 months and 48 months. In general, this issue depends on the amount of loan requested by the customer.
Qarz Al-Hosna loan does not have interest, but they charge a fee for it, which is between zero and four percent. The figure of marriage loan as the most famous type of Qarz-ul-Hasna facility in 1402 is at least 180 million Tomans. If the bride and groom apply for the marriage facility at the same time, the amount of the marriage loan reaches 360 million Tomans. Brides under 23 and grooms under 25 are given 220 million Tomans in marriage allowance. If the bride and groom meet this age requirement, they will be able to receive a figure equal to 440 million Tomans.
How serious is the reduction of Qarz Al-Hosna loan fees?
The Minister of Economy announced last week that Qarz Al-Hosna facility may become more attractive soon. Seyyed Ahsan Khandozi did not go into too much detail and was content to mention that the Money and Credit Council will deal with the issue in a meeting. Other sources, however, reported that in the case of the final approval of the Money and Credit Council as a decision-making body regarding banking laws, the fee for Qarz Al-Hosna facility will be reduced again.
The fee of Qarz Al-Hosna facility, charging a fixed fee in Qarz Al-Hosna facility and how to calculate it are among the issues that various views and opinions are raised about, and the members of the Money and Credit Council should discuss and review them. Issues related to Shariah and Fiqh also have their own special place, which should be clarified by the Jurisprudence Council of the Central Bank.
The Jurisprudence Council of the Central Bank is an institution consisting of five jurists, the Governor General of the Central Bank, one lawyer, one member of parliament and the CEO of one of the state banks. The Legal Council of the Central Bank is responsible for Sharia supervision and compliance of banking laws with Islamic Sharia.
The five jurists present in the council are introduced to the Guardian Council by the joint proposal of the director of the seminaries of the country and the governor of the central bank, and they become official with the approval of the majority of the jurists of this council. The Minister of Economy and Finance will be in charge of selecting other members of the legal council of the central bank.
The implementation of the decisions of the Juridical Council of the Central Bank is mandatory for the entire banking system of the country from 2016 onwards. The interest of bank facilities and specifically the fee of Qarz al-Hasna facility has always been one of the matters considered by the Jurisprudence Council and it seems that this year they have been able to at least put their word on reducing the fee of Qarz al-Hasna facility. It remains a process that usually has to be followed from the perspective of legal and customary administrative bureaucracy.
For now and until the final decision is announced, the applicants of Qarz-ul-Hosna loan can be happy with the statement of the spokesman of the Jurisprudence Council of the Central Bank: We proposed that the bank fee of Qarz-ul-Hosna loan for the trial period of six to 12 months, in two banks of Resalat and Mehr of Iran, be converted into labor wages, that is, from At the very beginning, a fixed fee of four percent plus a fixed number should be taken so that the total fee of Qarz Al-Hasna loan is reduced compared to the previous method.
Qarz Al-Hosna loan fee is currently calculated based on the annual debt balance. In this way, if someone borrows 100 million tomans, a four percent fee will be calculated on the first installment, and when the first year is over, the four percent fee will be added to the balance of the facility. This procedure continues to the point where at the end of the loan repayment period, the applicants actually pay seven percent to the bank instead of four percent. The CEO of Qarzul-Hosna Mehr Iran Bank welcomed this idea in the first step and said that this bank is even ready to reduce the loan fee of Qarz-ul-Hosna to zero.
Source: Ferraro