Urban Transformation Loan

Changes have been made to the loan amounts and repayment periods for residential or commercial properties identified as risky structures. According to the decree signed by President Recep Tayyip Erdoğan, loan limits and repayment periods have been increased.

INTEREST RATE SUPPORT:

Under Law No. 6306, interest rate support is provided by our Ministry to loans taken from banks by individuals or legal entities whose structures have been identified as risky.

The principles regarding interest rate support to be provided for loans taken from banks by those who wish to build or acquire their own homes and/or workplaces with their own means, within the scope of the third paragraph of Article 6 of Law No. 6306, are determined by Presidential Decree.

PRINCIPLES OF INTEREST RATE SUPPORT

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

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

• The bank notifies the Ministry of the list of eligible applicants for whom it deems it suitable to grant loans. The Ministry evaluates applications under Law No. 6306.

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

• Fees, insurance, and similar expenses requested by banks for loans with interest subsidy are paid by the beneficiaries.

Interest subsidized 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 subsidy, an application must be submitted to the Bank within one year of the disbursement date. The disbursement period for interest subsidized loans approved by the Ministry under this Decree is one year from the date of the interest subsidy eligibility letter issued by the Ministry.

INTEREST SUPPORT REPAYMENT

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

• Interest subsidy payments are stopped for loans not repaid by the beneficiaries.

• The risk arising from interest payments other than the principal risk and interest subsidy for the loans that beneficiaries will use under the protocols to be signed with banks belongs entirely to the bank.