Business

New regulation: Housing loan limits increased by 60%

President Recep Tayyip Erdogan signed a new decision on interest support, which provides convenience for those who want to transform their homes into urban transformation. Accordingly, the urban transformation interest-supported loan in residences was increased from ₺125 thousand to ₺200 thousand.

All studies on urban transformation continue at full speed. Due to the fact that our country is in an earthquake zone and there is a risk of collapse or damage due to old buildings, the government decided to increase the amount of interest-supported loans.

According to the law that entered into force with the signature of President Recep Tayyip Erdogan, the interest support amounts to be provided for the loans to be made available from the banks by the beneficiaries within the scope of the law numbered 6306 were changed.

The ₺50 thousand loan given to those who want to strengthen the building has been increased to ₺80 thousand.

The ₺125 thousand loan given to those who want to transform their home into urban transformation has been increased to ₺200 thousand.

The credit limit of ₺625 thousand for those who have more than one house was increased to ₺1 million. Thus, credit support increased by 60% in all items.

CREDIT MATURITY IS 120 MONTHS

Those who want to get credit under favorable conditions have the opportunity to make a maturity of up to 120 months. In today’s conditions, the average cost of a house is ₺200 thousand.

3-4% LOWER INTEREST

Within the scope of the law numbered 6306, real or legal persons whose structure is determined as a risky structure are provided with housing loan interest support at a rate of 4% to 3% on an annual basis compared to standard housing loans, thanks to the support of the Ministry of Environment and Urbanization.

WHEN TO APPLY?

In order to receive interest support, an application must be made to the bank within one year from the date of release. Within the scope of this decision, the period of disbursement of interest-backed loans approved by the Ministry has been declared as one year from the date of the Ministry’s interest support eligibility letter.

THOSE WHO BENEFIT FROM RENTAL AID CAN NOT BENEFIT FROM CREDIT

Tenants (those who have been living as tenants for at least 1 year) or apartment owners (with a maximum of 5 flats) can benefit from an urban transformation loan. If more than one person uses a building, then the floor owners must apply to the same contracted bank collectively at the same time.

Those who prefer Rental Aid support are not eligible for this support.

MINISTER KURUM: WE IMPLEMENTED THE REGULATION

Environment and Urban Planning Minister Murat Kurum “With the President’s Decree published in the Official Gazette, we implemented another regulation that will accelerate the urban transformation and bring financial convenience to our citizens. “We increased the amount of loans for our citizens who renew their buildings within the scope of urban transformation.”

Minister Kurum, “With this new step we have taken after the VAT reduction for our citizens who renew their buildings within the scope of urban transformation, we will continue to work to accelerate the earthquake transformation process in the whole of our country and to bring our citizens to solid and safe homes.”

Source: Hurriyet / Translated by Irem Yildiz

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