The executive instructions for granting micro-facilities to the banking network were communicated

According to the monetary and financial news, quoting the public relations of the Central Bank, in the executive instructions for granting micro-facilities to the banking network, the ceiling of the amount of micro-facilities has been set equal to two billion Rials. Also, in the above-mentioned instruction, while compiling a list of guarantees and documents that can be obtained from applicants for receiving micro-facilities, it is stipulated that micro-facilities be granted to applicants with a history and credit score based on accreditation, in exchange for obtaining a maximum of two collateral.

It is worth mentioning that one of the programs of the Central Bank of the Islamic Republic of Iran this year is to facilitate the access of individuals in the society to monetary and banking services, in other words, to expand financial inclusion. To this end, various measures have been taken so far. For example, by announcing the “Instructions on the limits and manner of providing basic services in absentia to clients in banks and non-bank credit institutions” in Circular No. 376911/00 dated March 15, 2014, the necessary conditions for “providing in-person services” by Banks and non-bank credit institutions were provided to individuals. In order to increase security in the exchange of banking information and facilitate the use of electronic signature certificates by individuals, a circular on “electronic signature certificates” was issued late last year, which allowed banks and non-bank credit institutions in addition to accepting certificates. Electronic signatures issued by intermediate centers under the supervision of the Government Root Center to provide banking services to holders of these certificates. In addition, with the cooperation of the relevant executive bodies, the “electronic promissory note” plan was used in selected banks, through which all the steps of purchasing, issuing and endorsing promissory notes without face-to-face and online in the integrated electronic promissory note management system. It can be done.

The full text of the executive instructions for granting micro-facilities

In order to facilitate the access of different segments of society to micro-facilities that can be granted by the country’s banking network, the “Executive Instruction for Micro-Facilities”, which will be called “Instruction” for short, will be compiled as follows:

Chapter One: Definitions
Article 1- In this instruction, the following titles are used instead of related phrases:
1-1- Central Bank: Central Bank of the Islamic Republic of Iran;
1-2 Credit Institution: A bank or non-bank credit institution established by law or with the permission of the Central Bank and under the supervision of that bank;
1-3- Micro facilities: Rial facilities with non-commercial purposes and in order to meet the essential needs of persons that are granted to the customer within the framework of the conditions set forth in this instruction.
1-4- Customer: a natural person applying for microfinance from a credit institution;
1-5- Accreditation: The process of determining the credit score of individuals using quantitative and qualitative models;
1-6- Credit points: A quantitative index that is calculated based on the methodology specified and approved by the risk committee of the credit institution and approved by the board of directors of the credit institution, and indicates the possibility of non-repayment 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.
1-8- Credit ceiling: The maximum credit that a credit institution allocates to the customer in the form of micro-facilities.

Chapter 2: Limits and methods of granting micro-facilities
Article 2- From the date of notification of this instruction, the credit institution is obliged to provide the micro-facilities granted based on the conditions, credit score, internal credit rating and credit limit of the customer in the form of installment sale contracts, conditional lease, Murabaha, Jaala and Qarz al-Hasna to the customer. To pay.
Article 3 – The maximum total amount of micro-Rial facilities payable to each customer at the level of all credit institutions is two billion Rials (2,000,000,000,000 Rials).
Article 4 – Criteria, conditions and other executive details related to the manner of granting micro-facilities such as the period and method of repayment of installments or settlement of facilities, method of calculating interest, fees, late payment of debt, as the case may be, subject to relevant notification regulations, including the provisions of executive instructions. Contracts and requirements are set out in uniform forms of bank lending agreements.

Chapter Three: Validation and Guarantee
Article 5- The credit institution is obliged to inquire about the history of returned checks and non-current debts of the customer before granting the facilities.
Note: Granting micro-facilities to a customer with a non-current or non-current debt repayment check is prohibited until the negative effect of the returned check is eliminated and the non-current debt is determined in accordance with the relevant notification criteria.
Article 6- In granting micro-facilities to a customer with a credit history and score, the credit institution can provide legal micro-facilities and the degree of liquidity of documents and guarantees by observing the legal duties and related regulations, as well as the conditions stated in this instruction, in proportion to the customer’s credit score. To receive a maximum of two cases of guarantees and guarantees as described below from the borrower or guarantor.
6-1- Commercial securities such as checks or promissory notes of the customer;
6-2- Debt securities, including securities accepted in the capital market and other;
6-3- Shares of companies listed on the stock exchange, including justice stocks;
6-4- Investment units of investment funds traded on the stock exchange;
6-5- Check or promissory note by the guarantor;
6-6- Objective property with customary value such as cars, coins or gold artifacts;
6- 7- Accountable persons;
6-8- Certificate of salary deduction by the customer or guarantor;
6-9- Guarantee of a business person with a business license who is engaged in economic activity at the time of granting the facility;
6-10- In rural areas, the guarantee of a resident of the village whose competence and competence is approved by the Islamic Council of the village is sealed with the seal of the Islamic Council of the village;
6-11- Permanent SIM card registered under customer ownership;
6-12- For villagers, farmers, traditional ranchers and nomads, livestock grazing license, agricultural well license, agricultural land ownership document, chain guarantee;
6-13- Guarantee issued by the firm where the customer is employed, including guaranteeing the debtor of the facility;
6-14- Enforcement contract;
6-15- Other guarantees commensurate with the credit score of the customer and the diagnosis of the credit institution.

Article 7- In granting micro-facilities to a customer without a history and credit score, the credit institution can, in proportion to the customer’s income level and ability to repay the installments, by obtaining a maximum of two documents and guarantees provided in Article (6) for the first time up to the ceiling One billion rials to grant micro-facilities at the level of all credit institutions.
Chapter Four: Other Requirements
Article 8- The credit institution is obliged to electronize the contracts for granting banking facilities within the framework announced by the Central Bank and to provide a copy of it to the customer.
Article 9- The provisions of this instruction have been developed in order to facilitate and create unity of procedure in the process of granting micro-facilities and do not create rights and obligations for the customer and the credit institution.
Article 10- Receiving cash collateral from the customer in granting micro-facilities in the form of various deposits is prohibited.
Article 11- The use of other facility contracts, with the exception of the cases mentioned in this instruction, for the purpose of granting micro-facilities is prohibited. The credit institution is obliged to apply the restrictions set forth in this instruction as appropriate in the relevant control and monitoring systems.
Article 12- The facilities of Qarz al-Hasna marriage are subject to the provisions of the relevant laws and regulations.
Article 13- Housing purchase and forgery facilities are subject to their own rules and regulations.
Article 14- Other requirements governing the granting of micro-facilities, with the exception of the cases explicitly mentioned in this instruction, are subject to the relevant laws and regulations.

The “Executive Instruction for granting micro-facilities” consisting of 14 articles and a note was approved in the second meeting of the Central Bank Credit Institutions Regulation and Supervision Commission on 1/28/1401 and is effective from the date of notification.