Credit System

Credit System

Credit is a banking service that includes payment methods arranged within certain periods and includes interest at various rates for those who need cash and apply for credit.

There are 54 banks operating in Turkey. These; 34 deposit banks, 14 development and investment banks, 6 participation banks. Banks are institutions that give and receive money with interest, make loans, discounts, foreign exchange transactions, keep money, valuable documents and goods in their safes, and engage in other economic activities. The most used service of banks with many services is credit.

Credit is a banking service that includes payment methods arranged within certain periods and includes interest at various rates for those who need cash and apply for credit.
The reasons for the people who want to use a loan differ. This ensures the diversification of loans. Credit types have increased due to the increasing competition in the banking and finance sector.

The names of the loans may vary from bank to bank. Although their names are different, they are similar loan types. According to the types of loans, the interest rates and the conditions sought for the people who can use them will vary. At the same time, interest rates and loan lending conditions vary in each bank. The types of loans you can use in Turkey are as follows; Loans by Purpose of Use (Consumption Loans, Production Loans, Investment Loans, Business Loans), Loans by Maturity (Term and Demand Loans, Medium Term Loans, Long Term Loans),   Loans by Place of Use (Agricultural Loans, Housing Loans, Professional Loans, Export Credit), Credits According to the Quality of Credit Buyer (Private Credits, Public Credits)

The most commonly used loan types are: Consumer loan: It is the most preferred form of loan today. Also referred to as personal loan or consumer loan. These are all mortgaged and unencumbered loans given to meet low-cost and short-term needs. Housing loan: It is a form of financing that is used by individuals to purchase a house by placing a mortgage and exempted from KKDF and BITT taxes taken from other loan types. Housing loan can be used up to 80% of the value determined by the housing appraiser.

Car loan: It is a type of personal loan used to finance the purchases of new and second-hand vehicles. During the loan term, the vehicle is mortgaged by the bank. Since a vehicle loan is a mortgage loan, it is a type of loan that is more likely to be approved than a consumer loan.
Artisan loan: Artisan loan, also known as “SME” loan, is a type of loan that small business owners can take advantage of to develop their business.

When you need to use a loan, you must first determine the type that is suitable for the subject you need to use a loan. Then, by making a loan calculation process, you will have detailed information about the details such as the interest and cost of the loan. You can apply for a loan to the bank that suits you best. Most people prefer to use a loan from a bank where they are constantly running their business. When applying for loans, the required documents will differ depending on the type of loan you will apply for.

Many banks offer the opportunity to apply online. Whether your application is positive or not will be notified to you within the time limit. It is also easy to apply for loans from banks' mobile banking applications. Housing loan application stages, which is one of the most frequently used loans, is a longer process than general purpose loan. Although each bank has its own special requests for housing loan application, there are usually similar stages. 

Housing loan application steps are as follows; After determining the bank you want to apply for, you can enter your personal information and calculate the monthly installment amount according to the maturity you want. At this stage; A quick preliminary assessment is made based on your monthly income, credit rating and the loan amount you want to use. If your loan is approved after the preliminary evaluation stage, the appraisal process begins to calculate the value of the house you want to buy. This process is due to the fact that there is a certain credit usage limit in housing loans.

You can use a loan for up to 80% of the appraisal value of the house. The remaining amount must be deposited into your bank in advance. If the amounts you will pay after the appraisal result are suitable for your budget, it is time to complete the documents requested by the bank. When you complete the documents required by your bank completely, you can apply for a loan. These documents; Identity card, image of the “Deed Information Inquiry” screen obtained from e-government or title deed document, lease contract and receipt if you are getting income from rent, document showing this income if you have any other income, 4A/4C service breakdown from e-government if you are a salaried employee, person if you own the company; tax certificate, year-end and interim financial data, if you are a legal company owner or partner; Trade registry gazette of your company showing the partnership structure, current and year-end financial data of your company and tax plate.

After submitting the documents to the bank, the loan approval process begins. The bank examines the documents submitted to it and then makes a positive or negative return. If the steps are successful, you need to go to the land registry office to carry out the deed transactions with the bank lawyer or branch officer. Here, the title deed of the house to be purchased is transferred and a mortgage is placed on the deed by the bank lawyer or branch officer in order to avoid any setbacks. After these transactions, the process is terminated by returning to the bank and payments are made to the seller of the house.

It is possible for foreign nationals to use loans in Turkey, which is one of the countries frequently preferred by foreign nationals. Of course, there are conditions that banks want. Foreigners who are citizens of a foreign country and reside within the borders of Turkey must prove their residence and work permits from Turkey 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 require a Turkish citizen to be shown as a guarantor, in case foreigners leave 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 also required to submit their salary slips and documents showing their 3-month income to the bank. There are required documents according to the type of loan to be applied for.
Personal finance credit; Foreigners can apply for consumer loans. For this, the customer must initially open a bank account. Then, in order to apply for a consumer loan, he/she must complete the required documents. Required documents: A copy of passport, proof of income, work and residence permit, local residence guarantor or cash collateral.

Transport Credit; Foreigners can apply for a vehicle loan to buy a new car. For this, the customer must initially open a bank account. documents for application; a copy of the passport, proforma invoice of the car to be purchased, proof of income, work and residence permit, local residence 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. Documents required from foreigners to apply for a housing loan; a copy of the passport, title deed of the immovable to be purchased, collateral, local resident guarantor or cash collateral, income certificate, work and residence permit.

The documents required may differ from bank to bank. Some banks may also require different documents. Therefore, before applying, it will be more useful to learn more about the documents they want from the website of the bank you will apply for.

You can contact us for your questions about the credit system in Turkey. As team, we are here to help you, as it will be more beneficial for you to monitor your loan needs.


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