Following a decision by the Banking Regulation and Supervision Agency (BDDK), consumer loan terms for new personal loan applications will be shortened. After the BDDK announcement, banks updated both interest rates and loan tenors in accordance with the new regulation.
Personal Loans Will Be Limited to a Maximum Term of 36 Months
According to the statement released after yesterday’s BDDK decision, the maximum repayment period that consumers previously used for personal loans—up to 60 months—has been revised. Under the new rule, the longest permissible term for personal loans is 36 months, meaning consumers may take out personal loans with a maximum tenure of three years.
The BDDK explanation on the change states that regulatory adjustments were made within the credit regulation: “Pursuant to Article 12/A, paragraph 6 of the credit regulation, Article 11/A, paragraph 5 and the provisions governing financial leasing and financing companies, general term limits applied to consumer loans have been revised. Accordingly, the loan term has been reduced from sixty months to thirty-six months, and banks have been instructed to align their operations with this provision.”
Banks Adjusted Their Loan Campaigns
Following the BDDK decision on personal loan tenors, banks revised their promotional loan packages. Interest rates and term offerings were updated; current loan opportunities for customers include the following:
- Türkiye Ekonomi Bankası (TEB): Offers loans with terms up to 36 months at an interest rate around 1.20. TEB also provides a 3-month payment deferral option so borrowers can begin repayments three months after disbursement.
- ING Bank: Personal loan rates at ING vary based on whether the applicant is a bank customer and the borrower’s credit score. The advertised rate is around 1.14 but may change according to creditworthiness. ING also offers a 3-month deferral option for eligible borrowers.
- Garanti BBVA: Under the new rules, Garanti BBVA offers personal loans up to 36 months. Interest rates differ by customer and credit score, with starting rates near 1.15.
- QNB Finansbank: Provides personal loans up to 36 months with a 3-month deferral option. Interest rates start around 1.07 and depend on the borrower’s credit score and requested amount.
Will Second Applications for the Individual Basic Needs Support Loan Begin?
During the pandemic, Halkbank, Ziraat Bankası and Vakıfbank offered a basic needs loan at 0.49% interest to help ease financial difficulties; those application periods have ended. After those programs, banks raised their loan rates to about 1.18% and removed deferred payment options. Because the virus continues to affect the economy, many borrowers hope for renewed low-rate loan programs. The Consumer Application Center noted that the pandemic’s economic effects persist and urged public banks to consider offering low-rate loans again, stating that many people remain in difficult financial situations. However, economic analysts consider it unlikely that public banks will reintroduce such low interest rates given current market conditions.