Maximum loan facilities for housing construction in urban worn-out texture

 

Granting loan facilities in form of civil partnership in urban worn-out and inefficient texture to natural and legal entities for construction of individual residential units and building complex development (two or more units) as well as professional developers through agent’s contract and/or simultaneous with deposit-free resources is possible based on the current corresponding rules and regulations as detailed in the following table:

 

Maximum loan facilities                     Zone	Maximum loan facilities for civil partnership and combination manner of loan facilities with supported and approved rate
	Maximum loan facilities granted in lieu of each unit in the form of individual and unprofessional complex construction         (1)			Maximum loan facilities granted in lieu of each unit to professional developers with mass construction license         (2)			Maximum loan facilities granted in lieu of each unit to professional developers with mass construction license in case of using modern technology and decrease of energy consumption   (3)
	Rate: 9%	Rate: 18%	Total	Rate: 9%	Rate: 18%	Total	Rate: 9%	Rate: 18%	Total
Tehran	500	200	700	500	400	900	500	600	1100
Other metropolises	500	100	600	500	300	800	500	500	1000
Other provincial centers and cities with over 200,000 population	400	200	600	400	400	800	400	600	1000
Other cities	400	100	500	400	300	700	400	500	900

 

 

Payment of loan facilities simultaneous with deposit-free resources is made at the request of the customer and upon confirmation of the Bank concerning the provision of credit through the corresponding departments.

 

Duration of contract:

Primary duration of civil partnership contract across the nation is given as 30 months at most according to appraiser’s comment and in consideration of volume of project and remaining cost during primary inspection as detailed hereunder:

• Up to 5 residential units: Maximum 12 months
• 6-20 residential units: Maximum 15 months
• 21-50 residential units: Maximum 20 months
• 51-100 residential units: Maximum 24 months
• 101 and more residential units: Maximum 30 months

 

• Introducing Organizations

• Urban  Development  and Revitalization Organization of Iran in Tehran Province
• Provincial General Department of Roads and Urban Development representing the corresponding company in other provinces;

 

Criteria and requirements for benefiting from maximum loan facilities granted to mass developers with professional eligibility

1. Acceptable mass development permits

 

 

Type of eligibility	Issuing authority	Requirements
Practice license for mass development	Ministry of Roads and Urban Development	All holders
Professional license to practice engineering	Ministry of Roads and Urban Development	Line of activity: Civil, civil and architecture, eligibilities for supervision, design and construction
Practice license as building technician	Ministry of Roads and Urban Development	All holders whose issuance date of practice license has been over five years on the condition of submission of construction documentations for at least 20 residential units

 

Natural entities:

 

 

Type of eligibility	Issuing authority	Requirements
Mass development permit	Ministry of Roads and Urban Development	All holders
Practice license to legal engineering	Ministry of Roads and Urban Development	Eligible holders of supervision, design and construction for construction and development (except for electrical and mechanical eligibilities)
Contracting Eligibility Certificate	Planning and Budget Organization	All holders of contracting certificate issued by the said organization who have been rated or qualified in the field of roads and building

 

Legal entities:

 

 

 

2. Acceptable Documentations with respect to empirical records

The members of Guild Association of Mass Developers may submit the corresponding certificate to membership of the Guild Association of Housing and Building Mass Developers and the corresponding documentations  for record of construction of residential units for at least two past projects in consideration of number of units constructed as detailed in the following table:

 

No.	City/District	Least number of residential units constructed by natural entities	Least number of residential units constructed by legal entities
1	Tehran	30	60
2	Provincial centers and cities of which population above 200,000 persons;	25	50
3	Other cities	20	40

 

 

Conditions for Instalment

1. Loan facilities through credit of Urban Development and Revitalization organization (amount of loan facilities at rate of 9%)

It should be settled in cash by the partner at the end of civil partnership period.

 

2. Payable civil partnership loan facilities for construction through internal resources of the bank (amount of loan facilities at rate of 18%)

Within maximum 10 years (including calculating civil partnership period)

 

Other conditions

• The applicant shall not have any bounced check or matured dues of which due date has been passed in the banking system.
• Inquiry through SEPAD System shall be done with respect to conscription service status of the applicant.
• Issuance date of the letter of recommendation submitted to the bank for benefiting from loan facilities shall be within maximum 45 working days.
• Conclusion of contract is pending on achieving at least 20% physical progress by the partner.
• Installment and transfer of over one unit of units subject of partnership through internal resources of the bank in the name of developer and/or his spouse or children and buyers in individual status and couples is possible on the condition of confirmation of financial ability of the said persons to refund the installments and further to full observance of other corresponding rules and regulations.
• Maximum payable loan facilities is possible according to the appraiser’s report of the bank and through full observance of maximum 80% of appraised value of total cost for execution of project.
• Payment of loan facilities is possible by achieving deposit of the one-year current account (or preferred without interest) for 5% of total payable loan facilities to applicants in form of primary deposit.