What will be the interest rates of the loans within the scope of the new law?
The law does not determine an interest rate nor does it contain a subvention mechanism that would lead to a drop in the interest rates in the short run. Thus, as before, the interest rates will vary according to market conditions.
On the other hand, one of the most important changes that comes with the law is that consumers will have the opportunity to take out loans with variable rates. With the law coming into effect, consumers will have the choice to take out;
Fixed + Variable
interest rate housing loans.
The law requires the index or the indices that will form the basis of the interest rates to be set out by the Central Bank of the Republic of Turkey ("CBRT"). However, as of yet, the aforesaid indices are uncertain as no regulations have been issued regarding this matter.
The most significant feature of the variable interest rates is that they change in line with the market interest rates in monthly or quarterly periods as determined on the agreements, thus lead to a decrease or increase (within the specified maximum limits) in the installment payments made by the consumers.
The law sets out standard conditions (loan to appraisal value ratio, terms, property features) for consumers regarding these loans.
You can apply for a loan at the nearest Garanti branch with the documents.