Business

Turkey: Credit limit increased in automotive sales

After the increase in automotive prices, action was taken regarding vehicle loans, which brought the industry to a standstill. Banking Regulation and Supervision Agency (BDDK) increased the credit limit from ₺120 thousand to ₺400 thousand, giving the sector a sigh of relief. The maturity of loans with a value of ₺400 thousand or less was 48 months. Loan installments will be applied for 36 months for cars with a price between ₺400 thousand and ₺800 thousand, for 24 months for those between ₺800 thousand and ₺1 million 200 thousand, and for 12 months for those between ₺1 million 200 thousand and ₺2 million.

After the increase in automotive prices, action was taken regarding vehicle loans, which brought the industry to a standstill.

The loan amount cannot exceed 70% for vehicles with a value of ₺400 thousand or less.

It will not exceed 50% in vehicles between ₺400 thousand and ₺800 thousand, 30% in vehicles between ₺800 thousand and ₺1 million 200 thousand, and 20% in vehicles between ₺1 million 200 thousand and ₺2 million. It will be zero for those over ₺2 million.

HOW WAS IT BEFORE?

The maturity and rate limitation on personal vehicle loans came in July 2021. Accordingly, the loan term was reduced from 60 months to 48 months for vehicles with a price of ₺120 thousand or less, from 48 months to 36 months for vehicles between ₺120 thousand and ₺300 thousand, and from 36 months to 24 months for vehicles with ₺300 thousand-₺750 thousand.

In addition, credit utilization rates were also limited. For example, those who want to buy a car worth ₺500 thousand can get ₺150 thousand of this as a loan. He has to pay ₺350 thousand in advance. ₺150 thousand, on the other hand, could be divided into a maximum of 24 months, so monthly installments would exceed ₺8 thousand.

Source: Sabah / Translated by Irem Yildiz

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