Türkiye's Nefes Kredisi Opens 3 November, Limit 5 Million

TOBB says applications for the new 50 billion lira tranche of its Nefes Kredisi open on 3 November. Firms that belong to a chamber or commodity exchange affiliated with the union can borrow up to 5 million lira each, at annual rates of 36% or 34%, with up to 48 months including a six-month principal grace period.

Where do firms apply, and is there a deadline?

Applications go through Denizbank, QNB Bank, Ziraat Bankası, Garanti Bankası, Halkbank, Vakıfbank, Yapı ve Kredi Bankası and Ziraat Katılım Bankası. TOBB’s statement gives no closing date, so firms need to follow the banks’ own announcements. The loan runs under the Kredi Garanti Fonu (KGF, the credit guarantee fund) Equity-backed Guarantee Programme and is meant to meet SMEs’ working capital needs on favourable terms.

Who is eligible, and what is the limit per company?

Any firm that is a member of a TOBB-affiliated chamber or commodity exchange can apply. Companies that already borrowed in earlier tranches can take extra credit to bring their total up to 5 million lira, the new ceiling per company. The programme opened on 8 June and has lent 45 billion lira so far; the new tranche adds another 50 billion lira. TOBB chairman Rifat Hisarcıklıoğlu said the demand showed how much the real sector needed the facility, adding that the union raised the per-company limit to 5 million lira.

How do maturity and interest work?

According to TOBB, no principal instalment falls due in the first six months, and the longest maturity is 48 months. The rate depends on the term: 36% a year for maturities up to 24 months and 34% a year for anything longer. Our example figures take those rates as the contract rate and add 5% BSMV (what is BSMV?); KKDF and allocation fees are not included. What is paid during the principal-free months depends on the bank’s schedule, so ask the lender you use for its own payment plan.

Example: what would the instalments be on a 5 million lira loan?

For example, 5 million lira at an annual 34% over 48 equal instalments gives a monthly payment of 196,976.83 lira and a total repayment of 9,454,887.75 lira, an annual cost rate of 42.16%. For example, 1 million lira over 24 months at 36% means 60,005.60 lira a month and 1,440,134.49 lira in total. The figures ignore the principal-free period: in a real schedule only interest and taxes are paid at first, and amounts differ from bank to bank.

Example: 34% annual interest, 48 equal instalments, commercial loan (5% BSMV, no allocation fee)

You can enter your own loan amount, term and interest rate in the loan payment calculator to get the monthly instalment and the total cost; the steps are explained in the guide to calculating an instalment.