In compliance with policies of the Fourth Economic, Social and Cultural Development Plan of Islamic Republic of Iran and aiming at promotion of indices for provision of appropriate housing for public especially for those with low income, promotion of sovereign role of government in provision of housing and realization of social justice and empowerment of groups of people with low income, Bank Maskan as a specialized bank at housing sector and in consistency with government policies aiming at omission of land price from housing and assisting with group of people of low income to develop a shelter grants to applicants the loan facilities in form of Mehr Plan according to civil partnership in consideration of the corresponding terms and conditions.
The said loan facilities are granted to applicants introduced by the corresponding organizations according to two contracts under the names of loan facilities for preparation and construction subject of “Mehr” housing plan in consideration of number of units constructed.
Note 1- Preparation means design, land leveling, waterway and curb development, substructure and roads asphalt construction, infrastructure equipment network, and construction of mosques and cultural and educational places.
Note 2- Payable loan facilities will be made in form of preparation at time of operation of units together with loan facilities for construction and sale by installments.
Eligible organizations introducing the applicants:
Loan facilities are granted to eligible persons meeting “Mehr” plan requirements according to letter of recommendation provided by one of the following organizations:
- Provincial Housing and Urban Development Organizations (In cities of which population is above 25000 persons);
- Islamic Revolution Housing Foundation (In the cities of which population is below 25000 persons);
- New Towns Development Company (In new towns);
Requirements of applicants subject to loan facilities of Mehr Housing Plan:
The applicants for Mehr Plan are enrolled and then they are organized by Ministry of Roads and Urban Development. In case of confirmation of four conditions, the said applicants are eligible to obtain loan facilities and at time of sale by installments, based on the corresponding system, necessary measures will be taken for authenticity of the applicants for sale by installments through loan facilities.
- The applicants do not necessarily have any house or owned housing land as of effective date of the Fourth Development Plan and they have not used any of governmental facilities for housing provision including land and residential unit or even subsidy loan facilities for purchase or construction of a residential unit.
- The applicant should have at least five years of residing in the cities subject of application.
- The applicant should be married or head of family except for 1- single women whose age is at least 35 years old; 2- The elite confirmed by the National Elite Foundation; 3- Physically or mentally disabled whose age is at least 20 years, confirmed by the State Welfare Organization;
- The applicants whose income is less than twice as much as the least salary stipulated by Labor Law are prioritized.
Types of applicants subject to Mehr Plan loan facilities
Housing cooperative companies, multi-family groups (Construction Group), mass developers and individual applicants
Types of lands as venue for execution of project
- Transferred lands: They refer to the lands subject of long-term, 99-year or 5-year lease contracts and they have been transferred to government representatives by Ministry of Roads and Urban Development.
- Self-owned lands: They refer to the lands as venue for execution of plan with title deed or personal promissory agreement for sale or contract for transfer, either the owner has paid the price of land to transferor or they are subject to 99-year transfer contract.
General conditions of loan facilities
- Maximum total period of civil partnership and sale by installments for Mehr Housing is given as 20 years. Civil partnership period is deducted from 20 years and the remaining shall be regarded as period for sale by installments.
- Total interest rate of all civil partnership contracts concluded for loan facilities subject of Mehr Housing Plan is given as 11%. As the above measure is taken, the subsidy share of government will be decreased by 1% and no change will be made in the proportional share of interest of the applicant in calculations.
- Total interest rate of contracts for sale by installments of Mehr Housing Plan is presently given as 12%.
- Interest rate of loan facilities of Mehr Plan in city of Tehran is given as 9%, in Provincial centers of other provinces, it is given as 7% and in other cities as 4% respectively. The said rate is regarded as proportional share of interest by the applicant for Mehr Housing who is eligible for obtaining the loan facilities. Differential amount of interest rate to approved rate of Monetary and Credit Council is regarded as government subsidy.
- In sale by installments concerning the self-owned units of Mehr Plan (the land subject of partnership is owned), the subsidy without consideration of condition of area of units (consumption pattern is not observed) is applied.
- For governmental lands subject of trilateral memorandum of understanding and lease contract with developer of which title deeds of improvements of units constructed are issued to the buyer after obtaining building completion certificate (title deed of land is issued to government), at time of sale by installments and in order to apply the subsidy, consumption pattern should be observed. Hence, maximum average useful building area of units constructed in the cities of which population is above 1,000,000, is given as 75 squares meter and in other cities of the country, it is given as 100squares meter respectively.
- For government lands with contract or transfer form, and in case at time of sale by installments and after obtaining the inquiry from the authorities issuing the letter of recommendation confirmed by the said department, deed of building site and standing property will be issued to the buyer concerning the urban lands and sale by installments will be free of impeidment by applying the subsidy discarding the condition of area. However, upon confirmation of the said department, deed of standing property is issued to the buyer and deed of building site will remain in the name of government and sale by installments will be made according to the contents of Clause 5.
- Not observing the consumption pattern by the applicants in construction projects is among the instances of violation committed by the partner and no subsidy will be granted, and the interest of loan facilities will be settled at the same rate of that of the Monetary and Credit Council and/or upon submission certificates of priority, the same will be settled by installments.
- In case of failure to fulfill the obligations by the applicants for Mehr Housing plan in construction projects, the base for interest will be cash settlement of payable loan facilities at expected rate of the bank given as 21% due to the violation committed by the partner.