One of the most valuable rights granted by law to insured men is the ability to count their military service toward their social security record by making a repayment (borçlanma). To use this right, first the amount owed for the military service must be calculated, and the required documents for the application must be prepared. If you cannot pay the calculated debt immediately and do not have cash on hand, you may ask: can I take out a bank loan to pay for military service repayment? Is this option available?
Can I Take Out a Bank Loan for Military Service Repayment? What Documents Are Required for This Application?
The Social Security Institution (Sosyal Güvenlik Kurumu, SGK) does not have any agreement or protocol with banks to provide loans specifically for social security repayments, including military service repayment (as well as childbirth repayment, overseas repayment, etc.). If you wonder “can I take out a bank loan for military service repayment?” the answer is that you would need to apply for such a loan under your own terms with banks. Military service repayment is voluntary: the debt is not created without the person’s request. Newly liable persons are not automatically retired through a bank loan by SGK. If you do not have a lump sum available, the most common immediate solution people consider is borrowing from family or friends. If that is not possible, those investigating whether they can get a bank loan for military service repayment will again find that SGK has no special loan arrangements with banks. In that situation you can only apply to banks for a regular consumer loan like any other personal credit.
There is no special condition required to apply for military service repayment; you can apply at any time, even if you are not currently insured. To apply, you must obtain a written document from the military recruitment office (askerlik şubesi) stating the repayment is for military service, provide a copy of your ID, complete the military service repayment application form and submit these documents in person to the relevant Social Security Institution office. The repayment application form can be obtained from www.sgk.gov.tr and must be filled out completely. Many applicants worry, “I applied—how will I pay this?” If you lack cash, the first question that comes to mind is “can I take out a bank loan for the military service application?” and “does SGK have a partner bank?” Unfortunately, there is no partner bank. Application locations for military service repayment are:
- If your latest employment was under 4a (SSK), apply to the Social Security office where your workplace is registered
- If you are under Bağ-Kur, apply to the Social Security office holding your file
- If under the Civil Servants’ Pension Fund (Emekli Sandığı), send the completed form and documents to the Public Servants Department, Mithatpaşa Cad. No:7 Sıhhıye/Ankara
How Is Military Service Repayment Calculated for 2017? And Can I Get a Loan to Pay It?
Before asking “can I take out a loan for military service repayment,” you should learn how much your repayment will be, which requires calculating the debt. The minimum daily rate for military service repayment equals 32% of one day’s gross minimum wage. The maximum daily rate is 7.5 times that minimum. The calculation uses the minimum wage in effect on the date you request the repayment. For 2017, the daily rate ranged from a minimum of 18.96 TL to a maximum of 142.20 TL. Example minimum repayment amounts for 2017 were:
- 30 days of military service: 568.80 TL
- 6 months of military service: 3,412.80 TL
- 1 year of military service: 6,825.60 TL
- 15 months of military service: 8,532.00 TL
- 18 months of military service: 10,238.40 TL
- 20 months of military service: 11,376.00 TL
The above calculations applied to applications submitted by 31 December 2017. Applications made after that date are calculated based on the minimum wage for 2018. Once you know the amount of the debt, you can investigate options such as applying for a consumer loan at a bank if you need financing.
Can I Take Out a Bank Loan for Military Service Repayment? What If Military Repayment Is Eliminated—What Happens to My Debt?
Occasionally media reports and rumors suggest that military service repayment will be eliminated or that the state will pay these debts, which might ease concerns such as “can I get a bank loan for this?” However, there is no legislative change to that effect. There is currently no legal regulation or decision to abolish military service repayment; you cannot have the service counted without payment. These rumors are unfounded and the state does not pay your military repayment debt.
If your first insured employment began after military service, completing the military repayment will move your insurance start date back by the length of the military service, which may change your retirement eligibility and possibly allow earlier retirement. If your first insurance entry was before military service, paying for the military repayment does not change your insurance start date; the service period is only added to your total credited service and does not alter retirement conditions.
After learning that SGK has no agreement with any bank, some people abandon the idea of seeking a dedicated loan and instead focus on how paying the repayment will affect their pension. Depending on the year in which the military service occurred, making the repayment can increase your pension amount. Pension calculations treat service periods differently based on when those services occurred. The highest accrual rates apply to service before the year 2000, so if the period you are repaying dates from before 2000, it can contribute to a higher pension.