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Loans in Turkey is our guide that has been created to provide readers with all the necessary information on Turkish loans, how to get a loan in Turkey, interest rates, mortgages and a lot more.
Whether you are looking for a loan to make ends meet or as a way to finance a new investment, Turkish banks has a wide variety of loans that suits everyone!
About loans in Turkey
Loans in Turkey are a big part of the Turkish economy. The loans in Turkey consist of different types such as consumer loan, mortgage loan, car loan, and credit card.
It is not hard to find the right loan in Turkey as there are many options to choose from. There are loans for foreigners in Turkey as well as loans for Turkish citizen. Loans are available online, and through banks.
These days, there are plenty of people who are struggling to make ends meet. This can happen for a number of reasons such as job loss, having a low-paying job, the rising cost of living, and more.
One option that people can turn to is taking out a loan in Turkey. This is a way to get access to extra money so you can pay for your bills and other expenses. There are a number of loan options available. For example, if you have a poor
Types of loans in Turkey
There are a lot of different types of loans in Turkey, designed to suite your financial needs, most importantly:
Cash Loans
A cash loan, often known as a general loan, is one of the most convenient ways to borrow money in Turkey.
Car Loan in Turkey
To buy a car in Turkey, you can use a Car Loan to fund the purchase of a vehicle, and you can take out your traffic and automotive insurance from our branches.
Housing Loan in Turkey
A house loan in Turkey is the best option for financing the purchase of a home in Turkey real estate market.
How to Choose Which Loan is Best for You
Choosing the best loan for your situation can be difficult, but it’s worth knowing which factors are most important.
- Run the numbers.
- Check your credit score.
- Consider your options.
- Choose your loan type.
- Check the best personal loan rates.
- Pick a lender and apply.
- Provide necessary documentation.
- Accept the loan and start making payments.
Interest rates in Turkey
Interest rates in Turkey are determined by the Central Bank of Turkey (TCMB) under the guidance of the Ministry of Finance. The interest rate is an important monetary policy tool used to maintain control over inflation and economic expansion.
In general, a high interest rate makes capital more expensive and therefore less accessible to individuals and businesses. This lowers investment, which in turn lowers economic growth, leading to higher unemployment rates. In addition, a high interest rate also tends to increase inflation by making it more expensive for people and companies to borrow money.
On the other hand lower interest rate increase the investment and make loans cheaper, but it tends to lower the value of the Turkish lira.
You can find the interest rate of Turkey from the official page of the central bank of the republic of Turkey.
Loans from islamic banks in Turkey
There are a lot of Islamic banks in Turkey that offers great services in Terms of credit and finance, most importantly Kuveyt Türk bankası and Al Baraka Turk.
Loans for the Turks
It’s very easy to take a loan in Turkey if you have a Turkish citizenship as most banks gives you already high credit for low interest-rate.
First of all, we should state that if you do not have a documentable income, you cannot take out a loan. If your credit rating prevents you from taking out a loan, you must increase your credit score in order to get a loan.
To summarize in general, we can list the conditions for a Turk to take a loan as follows:
- Be over 18 years old
- Having a sufficient credit score or credit score (if your credit score is between 1500-1900, you are likely to get a loan)
- Having a sufficient income and being able to document this income (ie showing it to the bank with a valid document)
- Having worked as an insured for a sufficient period of time (this period varies according to the request of the banks)
- If a mortgage is to be given, the written consent of the spouse is given to the bank.
- Finding a person to be a guarantor if the bank wants
Loans for foreigners in Turkey
Foreign nationals apply to banks for loans to own a house in Turkey, to establish a business or to meet some of their needs.
While banks in Turkey tended to have difficulties in providing loans to foreigners in previous years, they have changed their attitudes within the scope of the policy of supporting foreign investments implemented by the state in recent years and have started to offer loan opportunities more easily.
Considering that the number of foreigners living within the borders of Turkey has increased considerably recently, banks have started to give loans to foreigners if they meet certain conditions.
Opportunities offered to foreign investors in line with the recent developments and economic moves in Turkey have led foreigners to invest in real estate in Turkey. In addition, the opportunity to acquire Turkish citizenship by investment has been offered by the state to foreigners.
What are the Credit Application Conditions of Foreigners
First of all, foreigners who are citizens of a foreign country and reside within the borders of Turkey must prove their residence and work permits in order to obtain a loan.
Banks require foreigners to have a residence or work permit for at least 12/24 months.
Residence or work permit alone is not sufficient for foreigners to apply for a loan, and a guarantor is required.
Banks demand that a Turkish citizen be shown as a guarantor in case the foreigners leaving Turkey to avoid returning to the border.
In case of applying for a loan to purchase a real estate, the title deed of the real estate, water or electricity bills must also be submitted to the bank.
Banks determine the loans they give to foreigners according to the value of the relevant real estate.
Foreigners working in Turkey are required to submit their salary slips and documents showing their 3-month income to the bank.
With this condition, it is not possible for unemployed foreigners to take out loans. However, in order to facilitate the situation, it can be requested that foreigners who are unemployed in Turkey submit the statements showing the account movements of their bank accounts in their own countries.
Finally, a photocopy of the passport must be submitted along with the application form. Documents required from foreigners, depending on loan types, are listed below.
What are the Documents Required from Foreigners to Apply for Consumer Loans
Personal finance credit
Foreigners can apply for consumer loans to meet their cash needs. For this, the customer must initially open a bank account.
The documents and information required from foreigners to submit to the bank in order to apply for a consumer loan are listed below:
- A copy of the passport
- Income Certificate
- Work and Residence Permit
- Local resident guarantor or cash collateral
Car loan
Foreigners can apply for a car loan to buy a new car in Turkey. For this, the customer must initially open a bank account.
The documents and information required from foreigners to submit to the bank in order to apply for a vehicle loan are listed below:
- A copy of the passport
- Proforma invoice of the car to be purchased
- Income Certificate
- Work and Residence Permit
- Local resident guarantor or cash collateral
Housing Loan
When foreigners want to buy a new house in Turkey, they can apply for a housing loan for their financing needs. For this, the customer must initially open a bank account.
The documents and information required from foreigners to submit to the bank in order to apply for a housing loan are listed below:
- A copy of the passport
- Title deed of the real estate to be purchased
- Local resident guarantor or cash collateral
- Income Certificate
- Work and Residence Permit
NOTE: Apart from the above-mentioned documents, the documents that may be requested by the banks may differ. Before applying for any loan, foreigners must confirm the application documents on the relevant bank’s website.
Which Turkish Banks Give Credit to Foreigners
Banks that give loans to foreigners are divided into foreign-based banks and Turkey-based banks. While almost all foreign-based banks give loans to foreigners, only Ziraat Bank, Vakıfbank, İşbank, Garanti Bank, QNB Finansbank, Akbank, Halkbank, of Turkish banks, give loans to foreigners.
