Iran Banking Loans Surge: $169.85 Billion Lent in 10 Months

Iran’s banking sector demonstrated significant growth in lending activity during the first ten months of the current Iranian year, spanning from March 2025 to January 2026. The Central Bank of Iran reported a total of 8.492 quadrillion rials – equivalent to approximately $169.85 billion – in loans extended, marking a substantial 45.5 percent increase compared to the same period the previous year.

Business Lending Dominates

This surge represents an increase of 2.654 quadrillion rials, or roughly $53.10 billion, over the prior year’s lending figures. A significant majority, 6.293 quadrillion rials (around $125.87 billion), was directed towards businesses, encompassing both corporate and non-corporate entities. This accounts for 74.1 percent of all loans issued during the period.

Focus on Working Capital

Within the business sector, working capital financing was the primary driver of lending. Loans allocated for working capital across all economic sectors reached 5.153 quadrillion rials (approximately $103.07 billion), constituting 81.9 percent of all facilities provided to businesses. This suggests a strong emphasis on supporting ongoing operational needs rather than long-term investment.

Did You Know? Loans for personal goods purchases accounted for 42.6 percent of total lending to end consumers, reaching 937 trillion rials (about $18.75 billion).

Consumer and Sectoral Breakdown

The remaining 25.9 percent of total lending, or 2.199 quadrillion rials (about $43.99 billion), was allocated to individual consumers, and households. The industry and mining sector benefited substantially from the increased lending, receiving 2.33 quadrillion rials (around $46.63 billion) in working capital loans.

Notably, 87.5 percent of the 2.6 quadrillion rials (about $53.27 billion) in total loans granted to industry and mining were designated for working capital, further highlighting the banking network’s prioritization of maintaining production and industrial activity.

Expert Insight: The substantial increase in lending, particularly to businesses for working capital, suggests a potential effort to bolster economic activity within Iran. The focus on short-term operational funding, rather than long-term capital investment, could indicate a cautious approach given the current economic climate.

For comparison, lending during the first ten months of the previous year totaled 5.631 quadrillion rials (roughly $112.62 billion), a figure later adjusted to 5.837 quadrillion rials (around $116.76 billion) following revisions by the banking network.

Frequently Asked Questions

What percentage of total loans went to businesses?

74.1 percent of the total loans, amounting to 6.293 quadrillion rials (around $125.87 billion), were allocated to businesses.

What portion of loans to the industry and mining sector were for working capital?

87.5 percent of the 2.6 quadrillion rials (about $53.27 billion) in total loans granted to industry and mining were allocated to working capital.

How does the current lending compare to the previous year?

Lending increased by 45.5 percent, representing an additional 2.654 quadrillion rials (approximately $53.10 billion) compared to the same period a year earlier.

Given this significant increase in lending, particularly to the business sector, what impact might this have on Iran’s overall economic performance in the coming months?