Increased limit on urban transformation loans, increased interest support rate

Interest rates for loans for construction, acquisition and rehabilitation of homes and workplaces located in disaster risk areas were increased, and the maximum limits of support-based loans were increased.

The President’s decision was published in the Official Gazette today, which contemplates a change in the decision on support for interest on loans that banks will use by beneficiaries within the scope of Law No. 6306.

Within the scope of the decision, interest support granted to interest-backed construction, acquisition and reinforcement loans approved by the Ministry of Environment, Urbanization and Climate Change; increased from 600 basis points to 840 and 720 basis points for loans for construction and home purchase.

840 BP INTEREST SUPPORT FOR INDIVIDUAL DWELLING, 720 BP FOR MORE THAN ONE DWELLING

In this context, the interest support rate to be applied to construction and housing loans to be used by beneficiaries with more than one home for their first home has been determined at 840 basis points (BP) per year. The interest support to be given for 2 or more homes of these beneficiaries will be applied at 720 basic points.

In the interest support to be provided to beneficiaries, the 600 basis point interest support rate provided for the modernization loan was unchanged, while the interest support rate for construction loans and workplace acquisition increased from 440 basis points to 480 basis points.

HIGH LOAN LIMITS BASED ON INCREASED SUPPORT

With the same decision, the upper limit of the loan was also increased, which will provide interest support on the basis of entitlement.

Consequently, the upper limits of credit subject to interest support; TL 240,000 to TL 320,000 for reinforcement loans, TL 600,000 to TL 1.25 million for housing acquisition and construction loans, TL 600,000 to TL 800,000 for site construction loans work and for the acquisition of companies. 350 thousand TL for the loan.

TERM FOR APPLICATION TO THE BANK FOR INTEREST SUPPORT 3 YEARS

According to the regulation made with the decision, the term to request banks that will grant loans from the date of evacuation or demolition to provide interest support for construction, acquisition and reinforcement loans was increased from 1 year to 3 years . (Reuters)