Banking sector set lower interest rates on home loans

Published 10.08.2016 23:45
Updated 15.08.2016 15:35

In accordance with the government's call to drop interest rates on home loans to revive markets, Ziraat Bank has dropped home loan interest rates for various terms below 1 percent. A statement from Ziraat bank published yesterday suggests that home loan interest rates were reduced to 0.82 percent for periods from one to 24 months, 0.90 percent from 25 to 60 months and 0.95 percent from 61 to 120 months.

The previous interest rate issued by Ziraat bank for loans extending from 61 to 120 months was 1.16 percent. After the bank dropped the rate to 0.95 percent, monthly payments on a loan of TL 100,000 with a 120-month term will be TL 1,400 compared to TL 1,547 previously.

The Turkish Economy Bank (TEB) dropped their home loan interest rates down to 0.99 percent, within the scope of its new home loan campaign, which lasts throughout August.

TEB promises to evaluate loan applications within three hours after customers complete their documents.

President Recep Tayyip Erdoğan has repeatedly advocated lower interest rates, calling high interest rates oppressive to business investment, employment and economic growth, and he has called on the banking sector to lower interest rates. This follows a series of interest rate cuts implemented this year by the Central Bank of the Republic of Turkey (CBRT). Banking Regulation and Supervision Agency (BDDK) Chairman Mehmet Ali Akben announced last week that the BDDK would meet with leaders in the sector to lower loan rates.

Deputy Prime Minister Nurettin Canikli, speaking with the Hürriyet daily, said that all necessary measures to decrease loan rates would be taken in accordance with the results of the anticipated BDDK meeting.

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