Interest-free loan support for homemakers is provided by the Ministry of Family, Labour and Social Services. The Ministry offers an entrepreneurship loan of 15,000 TL to homemakers. This loan is granted without interest.
Payments for this support, intended to help women start working and become financially independent, begin after two years. Homemakers who wish to apply can submit their requests to the Social Assistance and Solidarity Foundations. The 15,000 TL loan is interest-free and repaid over a total of eight years; beneficiaries do not make installment payments during the first 24 months.
How Is KOSGEB Support for Women Opening Businesses Provided?
KOSGEB business start-up support for women is a joint service provided by KOSGEB and İŞKUR. Within this program, women entrepreneurs who want to start a business can receive a grant of up to 50,000 TL. Additionally, if the business owner wants to expand in later years, they can take out an interest-free loan up to 100,000 TL. Thanks to this state-supported grant, homemakers apply to become financially independent and run their own businesses.
KOSGEB has increased its support for homemakers from 70% to 80%. KOSGEB does not discriminate by gender in entrepreneurship support, but homemakers are eligible for an additional 20% advantage. Women who want to start a business must first complete a 32-hour practical entrepreneurship course, then submit their business plan. Applicants whose plans are approved can receive a 50,000 TL grant.
Who Can Receive KOSGEB Support?
KOSGEB support is granted to roughly 5,000 people each year, about 2,500 of whom are women. Homemakers who want to start their own businesses can receive support through KOSGEB and become independent business owners. With KOSGEB support, women can launch businesses in many fields, including textiles, floristry, automated retail, and toy manufacturing.
Many homemakers apply for loans to start ventures in fashion, bakeries, or restaurants. Approved business projects can receive a 50,000 TL state grant. Interest-free loans up to 100,000 TL are also available, with repayment beginning 30 months after disbursement.
How Much Support Does KOSGEB Give to Homemakers?
Under KOSGEB support for homemakers, a total of 150,000 TL can be provided. Of this amount, 50,000 TL is given as a grant and the remaining 100,000 TL as an interest-free loan. Applicants must comply with the conditions outlined in KOSGEB’s loan plans. Prospective entrepreneurs must also meet certain eligibility criteria.
Women applying for KOSGEB loans must attend the 32-hour KOSGEB training. Those who successfully complete the entrepreneurship courses offered by KOSGEB service directorates can then present their business plans. KOSGEB provides credit terms to women that are 20% more favorable compared with male entrepreneurs.
Who Is Eligible for a KOSGEB Grant?
Those eligible for KOSGEB grants are entrepreneurs who have successfully completed the KOSGEB training and whose business presentations receive approval. If the business plan is accepted, the entrepreneur can receive up to 150,000 TL in support.
Sectors eligible for this grant include:
- Manufacture of paper and paper products
- Manufacture of chemicals and chemical products
- Basic metal industry
- Manufacture of computer, electronic and optical products
- Manufacture of food products
- Manufacture of beverages
- Manufacture of clothing
- Installation and repair of machinery and equipment
- Collection, purification and distribution of water
- Construction of buildings
- Specialized construction activities
What Are the Application Requirements for KOSGEB?
KOSGEB application requirements must be met to receive the 150,000 TL support.
The application criteria set by KOSGEB are:
- The entrepreneur must be under 29 years old.
- The business must not have been transferred from relatives up to the third degree.
- It is required that no existing business or professional activity be joined as a later partner.
How Do You Register with KOSGEB?
To complete KOSGEB registration, you must first create an account in the system. Registration is essential to attend KOSGEB courses, which are offered free of charge.
To register:
- Visit KOSGEB’s website and complete the “Registration Procedures” section to join the KOSGEB database.
- Fill out the “KOBİ Declaration” section. This declaration determines whether your enterprise qualifies as an SME.
- Log into the system using your username and password.
- After logging in, provide all requested information accurately on the screen.
- Submit the completed declaration to the nearest KOSGEB office. Your information will be reviewed and you will receive a positive or negative response.
- Finally, prepare a detailed one-year business plan for the enterprise you will establish. This presentation is crucial for accessing KOSGEB support.
How Is the KOSGEB Grant Obtained?
Conditions for receiving the KOSGEB grant must be satisfied to obtain the 150,000 TL support. KOSGEB measures are government-backed and aim to support small and medium-sized enterprises and contribute to the national economy. To benefit from these supports, applicants must meet all requirements specified by KOSGEB.
Some of these conditions include:
- Applicants must register with KOSGEB to apply for grant and loan support.
- Applicants must successfully complete KOSGEB courses and trainings. Certificates are issued upon completion, after which participants prepare a business plan to realize their business idea.
- The details of how to prepare a successful and comprehensive business plan are taught during KOSGEB courses.
- KOSGEB grants are primarily available to young entrepreneurs aged between 18 and 30.
Banks Providing SME Support Loans in 2020
Banks offering SME support loans in Turkey are varied. SME support in Turkey was available through nine banks in 2020.
In 2020, the banks providing SME support were:
- Akbank
- Ziraat Bankası
- Garanti Bankası
- Yapı Kredi Bankası
- Denizbank
- QNB Finansbank
- Halk Bankası
- İş Bankası
- Vakıflar Bankası
How to Apply for the KOSGEB Entrepreneurship Certificate?
To apply for a KOSGEB entrepreneurship certificate, you must attend and successfully complete the training provided by KOSGEB. Entrepreneurs who plan to set up their business in an İŞGEM area should also submit an application. The KOSGEB application document can be obtained via the e-Government (e-Devlet) system.
To access the e-Government system you need:
- Your Turkish ID number
- An e-Government password
- You can purchase an e-Government password from any PTT branch for a small fee
- After logging in with your e-Government password and ID number, you can apply for the KOSGEB certificate.