Good news for indebted citizens: interest on consumer loans and credit card debts may be wiped out. A proposal has been submitted to the parliament concerning the cancellation of interest accrued on unpaid credit card and bank loan balances. If the proposal is approved by the parliament, many people could see the interest on their credit card and loan debts removed. In addition, it would become possible to consolidate your bank debts under a single lender.
A draft law has been presented to the Grand National Assembly of Turkey to restructure consumer loans and credit card debts by canceling accrued interest. The proposal aims to reorganize consumer credit debts that have become unpayable.
The plan envisions converting unpaid principal balances of credit cards and consumer loans into installment plans determined according to the consumer’s income level, restructuring other debts by canceling accumulated interest, and potentially providing a credit record amnesty.
What Are the Details of the Bank Debt Consolidation Loan?
What Are the Details of the Bank Debt Consolidation Loan? You can consolidate debts from various banks into a single loan at Ziraat Bank, and the main details of that loan are as follows.
- Loan terms are available for up to 60 months.
- It is provided specifically to close credit card debts.
- Citizens who hold one or more credit cards at different banks can consolidate all their credit card debts under Ziraat Bank.
- A repayment plan is prepared according to the applicant’s income and preferences.
- The maximum loan limit is 100,000 TRY.
- Depending on income and credit score evaluations, collateral or a guarantor may be required for the loan.
- Interest rates vary according to the chosen repayment method.
- Accordingly, the interest rate for a 24-month consolidation loan is set at 1.10%.
- The interest rate for a 60-month consolidation loan is 1.20%.
- You can apply for a debt consolidation loan at Ziraat Bank branches.
You Can Consolidate All Your Bank Debts Under One Bank
You can consolidate all your bank debts under one bank by applying for a debt transfer. The typical conditions for a debt transfer loan application are as follows.
- Being at least 18 years old.
- Having a good credit score and not being blacklisted.
- There must be no ongoing legal enforcement proceedings (foreclosure) against the applicant. Any past enforcement cases must be resolved. Applicants with active enforcement proceedings face greater difficulty obtaining credit.
- Documentation listing all existing loan balances must be prepared.
- If collateral is requested for the loan, the applicant may need to mortgage a real estate property. The property used as collateral must not have prior enforcement or seizure rulings.
- The applicant must have an income level sufficient to cover the planned loan installments and be able to document this income officially.
- The loan term generally must not exceed 36 months. Applications requesting terms longer than 36 months are usually rejected.
- The applicant’s total monthly income should be at least twice the monthly installment amount of the proposed loan.
Documents Required for a Debt Transfer Loan
When applying for a debt transfer loan, the following documents are typically required from the applicant.
- Identification document (ID),
- Residence certificate,
- Recent utility bill registered in the applicant’s name for the last 3 months,
- Documents showing all existing debts,
- Proof of income,
- Title deed and usage permits for any real estate offered as collateral,
- Document indicating spouse’s consent for collateral, if applicable,
- Income documents for guarantors.