The processing time for an Esnaf Kefalet Loan application depends on the reviewing procedures of the cooperative or institution where you applied. After you submit your application, the cooperative’s board of directors inspects your file as part of the evaluation process.
Following the board’s inspection and review, you will be informed whether your application is approved or rejected. The review and decision process typically takes about 15 days. Within this period, the institution will notify you in writing about the outcome of your application.
What Is the Limit of the Esnaf Kefalet Loan?
Loan limits for Esnaf Kefalet Loans vary depending on the type of credit requested. Specific limits are determined according to the credit category you choose.
The following are typical limits for different Esnaf Kefalet Loan types:
- Workplace acquisition loan: up to 500,000 TL for purchasing a business property.
- Working capital and discount loans: up to 200,000 TL.
- Vehicle loans: the loan amount depends on whether the vehicle is new or used. For new (0 km) vehicles, you can borrow up to the invoice amount. For used vehicles, the loan is generally up to 70% of the vehicle’s insured value.
- Vehicle repair or service vehicle renewal loans: up to 200,000 TL.
Esnaf Kefalet Loan Interest Rates and Deductions
When using an Esnaf Kefalet Loan, the state and cooperative may apply the following annual deduction rates.
- Bank commission: 1% per year
- Blocked capital deduction: 1.5%
- Regional union share: 0.25%
- Loan interest deduction: 4.5%
- Credit risk fund deduction: 1%
- Expense charge deduction: 1.5%
- Risk capital deduction: 1%
- TESKOMB share deduction: 0.25%
- Upper organization participation fee: 0.05%
What Are the Requirements for an Esnaf Kefalet Loan?
Applicants must meet specific conditions to be eligible for an Esnaf Kefalet Loan. If these conditions are not fulfilled, applicants cannot benefit from the loan. The cooperative reviews eligibility during the application process, and applications that do not meet the requirements will be rejected.
The main eligibility requirements include:
- The applicant must be a tradesperson or artisan.
- The applicant must be registered in the tradesmen and artisans registry.
- The business address or residence must fall within the cooperative’s service area.
- The applicant must be a member of the Tradesmen and Artisans Credit Guarantee Cooperative.
Qualified applicants can submit their applications. The board reviews each application and issues a written approval or rejection. Applicants who do not meet the stated conditions cannot receive a positive response, so be sure you meet the requirements before applying.
What Documents Are Required for an Esnaf Kefalet Loan?
You must prepare specific documents when applying for an Esnaf Kefalet Loan. Missing documents can delay or block the evaluation of your application, so gather these items prior to submission.
Commonly requested documents include:
- Turkish ID card and a front-and-back photocopy
- Tax certificate (original and photocopy)
- Tradesmen registry certificate (original and photocopy)
- Partnership declaration (to be obtained from the cooperative)
- Chamber activity document
- Residence certificate
- Four passport photos
- Latest account statement (from your accountant, signed and stamped)
- Photocopies of Bağ-Kur or SGK documents
- For drivers working professionally: commercial vehicle registration (original and photocopy)
Ensure all required documents are complete before applying. Otherwise, your application may not be considered or may experience delays. Prepare these papers in advance and then submit your Esnaf Kefalet Loan application.
Is a Guarantor Required for an Esnaf Kefalet Loan?
Some institutions may request a guarantor depending on your credit score and business turnover. If your credit score and turnover meet the cooperative’s standards and no other issues arise, the institution may not require a guarantor.
However, institutions often ask for one to three guarantors based on their evaluation of the applicant’s credit rating and business performance. The exact number depends on the applicant’s perceived reliability.
What Documents Must Guarantors Provide?
Guarantors for an Esnaf Kefalet Loan must also submit certain documents. If guarantor documents are incomplete, their guarantee will not be accepted, which may delay or lead to rejection of the main application.
Typical documents required from guarantors include:
- Turkish ID card (original and photocopy)
- Residence certificate (original and photocopy)
- Tax certificate (original and photocopy)
In some cases, cooperatives may request additional documents from guarantors. Therefore, applicants and guarantors should consult the cooperative in advance to confirm the exact documentation required.
Is Mortgage Required for an Esnaf Kefalet Loan?
Providing collateral is generally required for Esnaf Kefalet Loan applications. Although some applications may proceed without a guarantor, offering a mortgage is typically a condition for approval. Without collateral, the probability of refusal is high.
Keep in mind that for vehicle purchases, business equipment, or workplace acquisitions, the institution will usually require a mortgage to secure the loan.
Does Credit Score Matter for an Esnaf Kefalet Loan?
Credit score plays a significant role in Esnaf Kefalet Loan decisions. Institutions review applicants’ past credit relations with banks and their credit history. A strong credit history and high credit score increase the likelihood of approval.
Applicants with poor credit histories or low scores are less likely to receive a positive decision. However, some lenders, such as Halkbank operating through cooperatives, may weigh cooperative backing more heavily than individual credit scores, making loans potentially available to applicants with lower credit ratings.