SME support loans can be obtained from both banks and state-supported institutions. Bank offers for SMEs change periodically and various campaigns may be launched. In addition, SME Financing Support can be requested through KOSGEB. When businesses apply for support loans, documents typically requested include tax registration, financial statements, balance sheets, income certificates, commercial registry entries published in the trade registry gazette, and proof of residence.
What Are the Application Requirements for SME Support Loans?
To qualify for an SME support loan, a business is generally expected to have a good credit score. The credit score is determined by the business’s past loan history and payment behavior on loans and credit card installments. A high credit score indicates that banks have not experienced problems with the business in prior commercial transactions.
Consequently, banks are more likely to approve loan applications from businesses with strong credit profiles. Support loans are available to micro, small, and medium-sized enterprises. In addition to general creditworthiness, businesses must meet any specific conditions the lending bank sets for the sector or purpose for which the loan is requested.
Which Banks Provide SME Support Loans?
Both private and public banks offer SME support loans. Examples of banks that commonly provide such products include:
- Ziraat Bank
- VakıfBank
- Halkbank
- Garanti BBVA
- Yapı Kredi
- Turkish Economy Bank (TEB)
- DenizBank
- İş Bank
- Akbank
- QNB Finansbank
What Happens After You Apply to a Bank for an SME Support Loan?
After a commercial enterprise applies to a bank for an SME support loan, the bank first assesses whether the business qualifies as an SME. The bank then requests details about the intended use of the loan. Documents reviewed typically include the company’s balance sheet, annual financial statements, credit score, and the stated purpose of the loan. Based on its review, the bank may request additional documents.
If the loan is not approved, the bank will inform the applicant of the reasons. If approval is granted, business owners are invited to the branch to finalize terms. Once loan conditions are agreed upon, the necessary documents are signed and repayments begin according to the agreed schedule.
Where Can You Apply for State-Supported SME Loans?
Businesses can obtain SME support loans from both banks and KOSGEB. KOSGEB offers loans that may include a partial grant component and a low-interest portion. Applications for support under the SME Support Program must be submitted to KOSGEB. To be eligible, a business must be registered in the commercial registry and be recorded in KOSGEB’s database. The enterprise should be a member of the relevant professional chamber and apply in person at the local KOSGEB office. Businesses with fewer than 50 employees and an annual turnover or balance sheet below 8 million TRY may qualify for this support.
How Are KOSGEB SME Support Loan Applications Made?
Companies seeking support from KOSGEB should first check whether KOSGEB supports their sector. Applicants must register their business in KOSGEB’s database and complete the SME declaration. It is important that the declaration is up to date and accurate. Businesses without outstanding tax debts and that meet the eligibility criteria can benefit from KOSGEB’s SME Financing Supports.
What Are the Repayment Terms for KOSGEB SME Support Loans?
SMEs that receive support loans from KOSGEB typically do not have to make repayments during the first 12 months. Repayment terms can extend up to 36 months. Repayments do not necessarily have to be monthly equal installments; quarterly repayment options may also be available. For businesses that have difficulty providing collateral, the Credit Guarantee Fund can provide support.