In 2020, the banks offering student personal loan (need-based) support included the following:
- Garanti BBVA Education Loan,
- Yapı Kredi Bank Education Loan,
- Halkbank Education Loan,
- ING Bank Education Loan,
- İş Bank Education Loan,
- QNB Finansbank Education Loan,
- Ziraat Bank Education Loan,
- Vakıfbank Education Loan,
- Albaraka Türk Education Financing.
It is possible to obtain a student personal loan from the banks listed above. Interested applicants should apply directly to one of these banks to request financing.
What Are the Maximum Loan Amounts Banks Offer Students?
Maximum limits for education loans vary by bank.
The following list shows the upper limits reported by each bank:
- Garanti BBVA Education Loan: up to 100,000 TRY.
- Yapı Kredi Education Loan: up to 100,000 TRY.
- Halkbank Education Loan: up to 60,000 TRY.
- ING Bank Education Loan: up to 50,000 TRY.
- İş Bank Education Loan: up to 50,000 TRY.
- QNB Finansbank Education Loan: up to 50,000 TRY.
- Ziraat Bank Education Loan: up to 100,000 TRY.
- Vakıfbank Education Loan: up to 40,000 TRY.
- Albaraka Türk Education Loan: up to 100,000 TRY.
What Are the Typical Repayment Terms for Student Loans?
Repayment terms offered to students differ between banks. Under relevant regulations, education loans can be extended up to 120 months; however, many banks commonly offer education loans with terms around 36 months. Some banks, such as Odeabank and Denizbank, have offered education financing with terms up to 60 months.
How to Apply for a Student Loan?
Applicants must demonstrate that the loan will be used to cover education expenses. Therefore, students applying for education loans should submit an invoice or an official document from the educational institution showing the tuition or fees. If the funds are intended for non-educational purposes, applicants should apply for a standard personal loan instead.
Where to Submit a Student Loan Application?
Student loan applications can be made at bank branches. In addition, applicants may apply through internet banking, mobile banking apps, and, in some cases, ATMs or SMS banking services offered by certain banks. Some banks provide a preliminary approval through these channels.
After receiving preliminary approval, completing the loan process or advancing to the next stage may require an in-branch visit even if the initial application was made online. However, some banks allow students to obtain a personal or education loan entirely without visiting a branch.
What Are the Eligibility Requirements for Student Loans?
Applicants must meet certain conditions to qualify for a student loan. The most important requirement is the ability to demonstrate sufficient income to repay the loan. Income must be verifiable with documentation accepted by the lending institution.
Without proof of income, the likelihood of loan approval is low. Students who cannot apply in their own name may apply with a family member as a co-applicant or guarantor, provided the family member meets the bank’s criteria. Specific requirements vary by bank.
Students without personal income can visit a bank with a family member to receive detailed information and, if the family member meets the conditions, apply for education financing.
Common conditions required to obtain a student loan include:
- Many banks require applicants to be at least 20 years old, though some banks provide education loans to students aged 18 or older.
- Income must be documentable. If income cannot be proven, approval chances are low.
- Applicants should not have adverse records in their credit history; a low credit score can reduce approval chances.
- If collateral or mortgage is required, the spouse’s written consent may be requested for pledged property.
- An official document from the educational institution showing the tuition or fees due must be submitted to the lender.
What Should the Tuition Document Look Like?
An example of a document banks commonly request to verify tuition or fees might look like the following:
… / … / 2020
TO THE … BRANCH
Our student with ID number …, name …, has a total tuition fee of … TRY for the 2020–2021 academic year. As of the date of this letter, no payment related to the tuition has been made.
School Name / Title:
School IBAN Number:
Authorized Signature / Stamp:
Does Providing Collateral Increase the Loan Amount?
Submitting collateral is treated as additional security by banks. Offering collateral can increase the maximum loan amount and improve the chance of approval. Banks may request collateral in certain circumstances.
Situations where a bank may request collateral include:
- If a comparison of documented income to the proposed installment payments suggests the applicant may struggle to meet payments.
- If a review of previous credit history reveals issues such as a low credit score or adverse records.
- If the applicant’s employment history is short or lacks stability.
Are Student Loan Interest Rates Lower?
Interest rates for student loans generally do not differ significantly from rates for other consumer loan types. However, special promotions may exist for loans tied to partner educational institutions.
When education loans are offered as part of promotional campaigns, terms can vary by bank: approvals may be easier, longer repayment terms may be available, or higher loan amounts may be offered. Nonetheless, interest rates on student personal loans are typically similar to those of other consumer loans.