Limit regulation in urban transformation loan

Interest support rates for construction, acquisition and strengthening loans given to residences and businesses in disaster-risk areas were increased. Credit caps based on support were increased.

The interest support rate was increased in the transformation and strengthening loan given to housing and workplace.

According to the decision of the President of the Republic of Turkey, which foresees an amendment in the decision on the interest support to be provided to the loans to be used by the right holders from the banks within the scope of the Law No. 6306 published in the Official Gazette on 13.04.2023, the interest support given to the interest-supported construction, acquisition and strengthening loans approved by the Ministry of Environment, Urbanization and Climate Change within the scope of the decision; increased from 600 basis points to 840 and 720 basis points for housing construction and acquisition loans.

840 BASIS POINT INTEREST SUPPORT FOR A SINGLE RESIDENCE, 720 BASIS POINTS FOR MORE THAN ONE RESIDENCE

In this context, the interest support rate to be applied to the construction and housing acquisition loans to be used for the first residence of the right holders who have more than one residence was determined as 840 basis points (BP) per year. The interest support to be given for 2 or more houses from these right holders will be applied as 720 basis points.

While the interest support to be given to the beneficiaries was not changed from the 600 basis point interest support rate foreseen for the strengthening loan, the interest support rate to be given for the business construction and acquisition loans was increased from 440 basis points to 480 basis points.

SUPPORT CORE CREDIT LIMITS INCREASED

With the same decision, the upper limits of loans to be provided with interest support on the basis of entitlement were also increased. Accordingly, the upper limits of loans based on interest rate support are; It was increased from TL 240 thousand to TL 320 thousand for the strengthening loan, from TL 600 thousand to TL 1.25 million for housing construction and acquisition loans, from TL 600 thousand to TL 800 thousand for the workplace construction loan and from TL 250 thousand to TL 350 thousand for the workplace acquisition loan.

APPLICATION TIME LIMIT TO THE BANK FOR INTEREST SUPPORT IS 3 YEARS

According to the regulation made with the decision, the time limit was also increased from 1 year to 3 years in applying to banks that will provide loans from the date of eviction or demolition for the provision of interest support for construction, acquisition and strengthening loans.