Small and medium-sized enterprises form the backbone of Turkey’s economy. In 2025, interest-free loans offered by KOSGEB are a central support for many businesses. To benefit from these favorable programs, you must meet specific requirements and follow the application procedures correctly.
This article reviews the terms of KOSGEB interest-free loans in 2025 with up-to-date information. From who can apply and how to apply, to the types of support, loan limits and application steps, you will find the essential details for entrepreneurs and tradespeople.
What Is a KOSGEB Interest-Free Loan?
KOSGEB provides both grants and interest-free loans to help tradespeople and SMEs overcome financial difficulties. An interest-free loan means the borrower repays only the principal in scheduled installments without paying interest to banks or financial institutions. This allows businesses to strengthen working capital without increasing debt service costs.
Interest-free KOSGEB loans are typically offered under entrepreneurship support programs, business development supports or sector-specific initiatives. In 2025, many of these programs are being offered as repayable but interest-free loans, which is a significant advantage for business owners.
Who Can Apply for KOSGEB Interest-Free Loans in 2025?
In 2025, the following groups are generally eligible for KOSGEB interest-free loans:
- Tradespeople and artisans
- Small and medium-sized enterprises (SMEs)
- New entrepreneurs (including women, youth, persons with disabilities, veterans or relatives of martyrs)
- Applicants with an approved KOSGEB-supported business plan
- Applicants with a clean credit record
Additionally, businesses must operate in sectors listed in KOSGEB’s current supported sectors. The list of supported sectors is published at the beginning of each year and applicants should confirm the latest list before applying.
Conditions for Interest-Free KOSGEB Loans for Tradespeople (2025)
Interest-free loans are distinct from grants; KOSGEB also provides grant support under certain conditions. The basic requirements for interest-free loans in 2025 include:
- Being a citizen of the Republic of Turkey.
- Being at least 18 years old.
- Being registered in the KOSGEB database and owning an active SME or starting a new business.
- Preparing a business plan and obtaining KOSGEB approval.
- Completing required KOSGEB trainings (Applied Entrepreneurship Training).
- Applying within a specified timeframe from the company’s establishment date, when required.
- Demonstrating project-based sustainability and growth potential for the business.
- Not holding more than 25% partnership in another company in the last three years prior to application.
- Having a clean financial and credit record.
- Not having benefited from the same support before, where program rules prohibit repeat support.
- Operating in an activity included in KOSGEB’s supported sectors list.
Women, young entrepreneurs, disabled applicants, veterans and relatives of martyrs may receive additional limits or special support. In some cases, these groups can be granted extra funding ranging from 10,000 to 150,000 TL.
2025 Interest-Free KOSGEB Loan Amounts and Limits
KOSGEB loan upper limits vary by business type, sector and entrepreneur profile. Main loan amounts for 2025 include:
| Loan Type | Maximum Limit | Additional Support | Support Rate |
|---|---|---|---|
| Interest-Free Entrepreneur Loan | 1,500,000 TL | Women/young/martyr relatives: additional 150,000 TL | 80% |
| Women Entrepreneur Loan | 1,650,000 TL | ||
| Young Entrepreneur Loan | 300,000 TL | ||
| Non-Repayable Establishment Grant | 10,000–20,000 TL | Women/young: additional 10,000 TL | 100% |
Note: Grants are generally provided as 10,000 TL for sole proprietorships, 20,000 TL for capital companies, and personnel supports are offered with terms up to 36 months. In 2025, some sectors may receive repayable support up to 2,000,000 TL, and project-based supports in high-technology sectors can reach up to 10,000,000 TL.
How to Apply for an Interest-Free KOSGEB Loan
The steps to apply for a KOSGEB interest-free loan are as follows:
1- Complete KOSGEB Training:
Applicants must complete the “Applied Entrepreneurship Training.”
2- Register in the KOSGEB Database:
The individual or business must be registered in the KOSGEB database.
3- Prepare a Business Plan:
Prepare a business plan that includes financial targets, investment details, projections and justification for the investment.
4- Submit Application and Documents:
Complete all documents requested by KOSGEB and submit the application.
5- Loan Approval and Disbursement:
If the application is approved, the interest-free loan is provided through KOSGEB’s contracted banks.
6- Closure and Repayment:
Grants and loans must be used for their intended purposes; repayment schedules follow the program’s specified terms.
Documents Required for Application
- Identity card or new national ID
- Tax plate / business registration
- Chamber registration (tradesmen, chamber of commerce, etc.)
- Business plan
- KOSGEB entrepreneurship training participation certificate
- Document showing credit score
- Financial documents from the last 3 years (if available)
- Criminal record and social security (SGK) documents
KOSGEB Interest-Free Loan Programs and Details (2025)
Major types of interest-free loans provided by KOSGEB in 2025 include:
1. Entrepreneurship Support Program
This program targets new businesses and recently established entrepreneurs. Sole proprietorships may receive a 10,000 TL non-repayable establishment grant, capital companies 20,000 TL, and applicants with an approved business plan may benefit from up to 1,500,000 TL in interest-free loans with an 80% support rate. Additional advantages are available for women, youth and priority groups.
2. Business Development Support Program
This program provides repayable interest-free loans to active SMEs and tradespeople to help grow their operations. The support limit is up to 1,500,000 TL and additional funding can be available for machinery, software, personnel expenses or performance-based needs.
3. Capacity Development Support Program
SMEs in manufacturing, information technology, research and consulting or other strategic sectors can apply for interest-free loans to increase capacity. Eligible expenses often include machinery and equipment, software and personnel costs.
4. Women and Young Entrepreneur Loans
Women and young entrepreneurs receive higher limits, longer terms and grace periods in some programs. Support limits for women are typically increased by 10–15%, and youth-targeted programs may include additional grants.
5. Green Industry and Digital Transformation Supports
Interest-free financing has been expanded for businesses adopting digital transformation, green energy or environmentally friendly production. Sustainable projects may receive extra grants and higher loan ceilings.
Supported Sectors and Lines of Business
KOSGEB’s interest-free loans emphasize the following sectors:
- Manufacturing industry
- Information technology and software
- Retail
- Transportation and logistics
- Automotive supply industry
- Consulting and education services
- Food and beverage sector (restaurants, cafes)
- Health and medical products manufacturing
- Agriculture and food
- Innovative technologies and R&D
The sector list is updated annually by KOSGEB, so applicants should check the current list before applying.
Repayment and Term Conditions
Interest-free loan repayment is structured to avoid imposing extra burden on tradespeople. Main conditions for 2025 include:
- Loan principal is repaid in installments without interest.
- Loans are disbursed through KOSGEB’s contracted banks.
- Terms can extend up to 36 months.
- Some programs offer up to 12 months grace period before repayment starts.
- Early repayment is allowed.
- Repayment schedules are tailored to the business’s cash flow and income-expense profile.
Frequently Asked Questions
Can anyone apply for KOSGEB interest-free loans?
Only SMEs and tradespeople with a KOSGEB-supported business plan and operating in eligible sectors can apply.
Can a new entrepreneur receive both a grant and an interest-free loan?
Yes. In many programs, an establishment grant is provided together with interest-free loan support.
Are tax and chamber registrations required?
Yes. Official registration is mandatory for all applicants.
Must the business start operating before loan repayment begins?
Generally yes; unless otherwise stated, loan disbursement and repayment are tied to the business becoming operational.
Important Notes:
- Inconsistencies, missing documents or false statements in application materials may lead to rejection.
- Using interest-free loans for purposes other than those declared can disqualify the business from future KOSGEB support.
- Regulations and application calendars may change annually, so monitor KOSGEB announcements for the latest information.