Iran has introduced credit cards for the first time in a move ostensibly aimed at encouraging public spending.
The credit cards will be available to applicants in three denominations of 100 million rials ($3,000), 300 million rials ($10,000) and 500 million rials ($15,000). They can be used for on-line purchases, reported Press TV.
The cards have been devised on the basis of Murabahah Islamic financing structure. Murabahah by definition involves the purchase of a commodity by the bank, on behalf of the customer, to be sold to the customer on a cost-plus-profit basis.
The profit rate set by the Central Bank of Iran (CBI) for Iran's Murabahah credit cards is 18 percent. The customers can repay the amount through the cards in 36 installments.
Reports said only two banks — Melli Bank and Ayandeh Bank — have started issuing the credit cards.
According to IRNA, Ayandeh Bank issued over 12,000 credit cards on the first day.
The government has for months put the promotion of credit cards on its agenda.
Communications and Information Technology Minister Mahmoud Vaezi said in August that the country was preparing to introduce credit card services processed by global payment operator MasterCard for the first time.
Credit and debit cards, accepted in more than 210 countries where MasterCard is valid, will be distributed at financial branches of the Iran Post Company, Vaezi emphasized.
Along the same lines, the CBI announced in March that it is preparing the grounds for the use of credit cards provided by Asian banks such as Japan Credit Bureau (JBC) as well as China UnionPay (CUP).
