As the coronavirus pandemic continues to affect the economy, state-owned Halkbank has announced an important loan program for small business owners. Under the low-interest, six-month deferred repayment SME support loan, eligible small businesses can borrow up to 25,000 TRY.
Halkbank Low-Interest Loan Offer
In an announcement, Halkbank stated it is offering financial assistance to businesses struggling due to the coronavirus outbreak. The support package remains in effect and provides low-interest financing of up to 25,000 TRY to help mitigate the pandemic’s economic impact.
The loan is available with terms up to 36 months and carries reduced interest rates. In the announcement titled that the bank provides business loans and Paraf merchant card products under the economic stability shield for tradespeople, Halkbank noted loan opportunities up to 36 months at monthly interest rates around 0.38. Applicants can apply through branches or online channels.
Halkbank indicated the annual interest rate for the support package is 4.75%, which corresponds to a monthly rate of approximately 0.38% when divided over 12 months. The upper limit for this low-interest consumer-style loan is set at 25,000 TRY, and smaller amounts are also available under the same conditions. Previously offered terms of up to 60 months were reduced to a maximum of 36 months following Banking Regulation and Supervision Agency (BDDK) rules. Loans approved now also include a six-month repayment deferral period.
Six-Month Repayment Holiday
The support is provided with a six-month repayment holiday, meaning no loan repayments are required for the first six months from the loan disbursement date; repayments begin with the first installment after that period. This offers significant relief to individuals and businesses financially affected by the pandemic.
Halkbank’s guidance specifies that the support package is available to active tradespeople. To qualify, the applicant must currently be operating as a tradesperson and have a registered commercial enterprise with the relevant chamber of commerce.
The bank also clarified that while the standard upper limit is 25,000 TRY, requests exceeding that amount will be re-evaluated: the excess portion may be assessed under a different loan product within the bank’s credit framework, which can allow for additional borrowing depending on the evaluation.
Halkbank SME Support Package — Application Requirements
To apply for the low-interest, six-month deferred tradesperson support loan, applicants must meet certain conditions. The primary requirement is that the business be active and continuing operations at the time of application.
Closed businesses or those that have suspended operations are not eligible. The business must be registered with the chamber of commerce and have no outstanding debts to that chamber. The applicant’s credit score is also considered during the evaluation.
Prior loans previously used by the applicant are not reclassified under this support program. Additionally, each business may receive the Halkbank tradesperson support loan only once; repayment of outstanding loans in a lump sum does not permit a repeat application.
Because the loan is offered with terms up to 36 months, longer repayment periods can affect the applicable interest rates. Eligible applicants can submit a preliminary application by completing the online form on Halkbank’s official website or by visiting a Halkbank branch.