Urban Transformation Loan

Loan amounts and disbursement periods for residences or businesses identified as at-risk structures have been amended. According to the decree signed by President Recep Tayyip Erdoğan, loan limits and disbursement periods have been increased.

INTEREST SUPPORT:

Under Law No. 6306, our Ministry provides interest support for loans taken from banks by individuals or legal entities identified as at-risk. The principles regarding interest support for loans taken from banks by individuals who wish to construct or acquire their own residences and/or businesses within the scope of Article 6, paragraph 3, of Law No. 6306 are determined by the Presidential Decree.

INTEREST SUPPORT PRINCIPLES

• The Ministry signs a protocol with banks that apply to it.

• The bank evaluates loan applications within the framework of the protocol's provisions and the bank's lending procedures, principles, and legislation.

• The bank notifies the Ministry of the list of beneficiaries it deems suitable for granting loans. The Ministry evaluates applications under Law No. 6306.

• Those eligible for interest support are notified to the Bank.

• Fees, insurance, and similar expenses requested by banks for loans that will receive interest support are paid by the beneficiaries.

Interest-supported loans are subject to the provisions of the Council of Ministers Decree or Presidential Decree in effect on the date of their approval by the Ministry. To receive interest support, an application must be submitted to the Bank within one year of the date of discharge. The disbursement period for interest-supported loans approved by the Ministry under this Decree is one year from the date of the Ministry's interest support eligibility letter.

INTEREST SUPPORT REPAYS

• Interest support payments for loans provided by banks are determined by the Ministry and made from the account.

• Interest support payments for loans not repaid by the beneficiaries are suspended.

• The principal risk of the loan to be used by beneficiaries under the protocols to be signed with banks, as well as the risk arising from interest payments excluding interest support, are entirely borne by the bank.