If you have debts at a bank, you can use the “debt consolidation loan” options offered by various banks to pay off your outstanding loans. You may prefer to transfer debts from different banks to a single bank and close them with more favorable interest rates.
Terms Up to 60 Months
For 2020, the term options for debt consolidation loans are set up to 60 months. This allows you to pay off loans held at different banks with repayment periods of up to 60 months. Another important point to know about a debt consolidation loan is that the interest rate in effect at the time the transaction is carried out applies. Although terms and interest rates can vary, a consistent element is the Findeks credit score. When you apply for a debt consolidation loan, your current credit score is also checked.
Whether an applicant can repay a debt consolidation loan is calculated by assessing monthly income and credit score. Today, debt consolidation loan applications are processed only through bank branches. An important detail to consider is that these loans are not given as cash directly to the borrower. If the loan is approved, the bank that provides the loan performs an EFT to the bank to which you owe money and closes your existing debt.
Banks Offering Debt Consolidation Loans
The terms for debt consolidation loans offered by various banks are as follows:
- Akbank: Akbank offers terms up to 12 months and allows repayment of debts and credit card balances held at other banks. Akbank consolidates debts between 200 TL and 20,000 TL and sets a minimum term of 8 months. Based on current interest rates, repaying a 10,000 TL consolidated loan at Akbank would result in a monthly installment of about 930 TL and a total repayment of around 11,166 TL.
- Ziraat Bank: Ziraat Bank provides the option to close credit card and other loans from public or private banks, and is notable for its low interest rates. The bank offers restructuring up to 60 months. The repayment of consolidated debts is handled within the scope of Ziraat consumer loans and is evaluated under individual customer applications. Small and medium-sized enterprises should use the bank’s SME solutions. To apply, the applicant’s credit score should not be in a risky range, the requested loan must be sufficient to cover all debts (partial coverage may not be granted), and applications require income documentation, identification, and a paid invoice or similar proof. Based on current interest rates, a calculation for 20,000 TL yields a monthly payment of approximately 466 TL and a total repayment of about 27,991 TL.
- QNB Finansbank: Finansbank allows restructuring of loans up to 30,000 TL with terms up to 60 months, offering rates starting at 0.79. Amounts vary based on credit score and term, and the service enables consolidation of both loans and credit card debt.
Points to Consider When Taking a Debt Consolidation Loan
To take out a debt consolidation loan, you must meet the conditions set by banks. There is an upper limit for consolidating debts from different banks, which varies by bank and can generally rise up to around 50,000 TL. Before applying for a consolidation loan, contact the banks where the original loans were taken to request restructuring if applicable. If you are restructuring credit card debt, contacting the creditor bank may not be necessary. While the full amount of consumer loans may be consolidated, up to 75% of credit card balances can be included in the restructuring, depending on the bank’s policies.