Rouhani: Tehran Renters Receive 50 Million Toman Rental Deposit Loans

The President of the Islamic Republic of Iran says that renters in Tehran are receiving 50 million toman loans for rental deposits.

Hassan Rouhani said on Wednesday, the first day of Mordad, in a cabinet meeting: This loan will include both individuals with fixed salaries and families under government support programs.

According to him, this amount is 30 million toman in other major cities and 15 million toman in smaller cities.

Based on reports published by Iranian media, rental deposit loans are provided to renters with 13 percent interest and principal, and after the rental period ends, the principal amount is returned to the bank.

Previously, the Deputy Minister of Roads and Urban Development of Iran announced that from a fund of 75 thousand billion toman allocated to fight coronavirus, rental deposit loans would be paid to needy renters.

According to Mahmoud Mahmoudzadeh, this loan is definitely not free, and those who receive banking facilities return both the interest and principal of this amount, but in housing deposit facilities, renters only return the interest of these facilities to the bank.

Following criticism of soaring housing prices and rental rates in the country, the President of Iran announced on the eighth of Tir that the government has decided that rental rates in Tehran cannot be more than 25 percent higher than the previous year.

A sharp increase in housing prices and a 40 to 100 percent increase in rental rates in Iran over recent months has caused serious discontent among renters, especially since recently the Deputy Minister of Roads and Urban Development announced that based on 2016 statistics, 43.6 percent of people in Tehran are renters.

Recently, reports have been published about increased requests for two families to share one residential unit, living in containers, renting rooftops of houses for overnight stays, and renters selling gold and cars to pay for housing deposits, and even “renters moving to the outskirts of cemeteries.”

The President of Iran announced on Wednesday that the housing deposit loan is good assistance for people under pressure in the “difficult coronavirus conditions.”

With tightened sanctions and Iran’s economic recession due to the coronavirus outbreak, many Iranian citizens have come under severe economic pressure.

Source: Radio Farda