Yes, foreigners can take out loans in Turkey. Foreigners can apply for consumer loans to banks in Turkey in order to get consumer loans, vehicle loans and home loans. For this, there are some points that foreigners should pay attention to and some documents that they should submit to the banks. In the continuation of our article, you can find what you need to know about foreigners taking out loans in Turkey.
Credit Opportunity for Foreigners in Turkey
Foreign nationals apply to banks for loans to own a house in Turkey, to establish a business or to meet some of their needs. While banks in Turkey tended to have difficulties in providing loans to foreigners in previous years, they have changed their attitudes in line with the policy of supporting foreign investments implemented by the state in recent years and have started to offer loan opportunities more easily.
Considering that the number of foreigners living within the borders of Turkey has increased considerably recently, banks have started to give loans to foreigners if they meet certain conditions. The opportunities offered to foreign investors in line with the recent developments and economic moves in Turkey have led foreigners to invest in real estate in Turkey. In addition, the opportunity to acquire Turkish citizenship by investment has been offered by the state to foreigners. In this context, foreigners request housing loans from banks the most. Among the foreign citizens who request loans, those who have European countries and US nationalities can get loans more easily from banks in Turkey.
What are the Credit Application Conditions of Foreigners?
First of all, foreigners who are citizens of a foreign country and reside within the borders of Turkey must prove their residence and work permits in order to obtain a loan. Banks require foreigners to have a residence or work permit for at least 12/24 months.
Residence or work permit alone is not sufficient for foreigners to apply for a loan, and a guarantor is required. Banks require a Turkish citizen to be shown as a guarantor, in case foreigners leave Turkey to avoid returning to the border.
In case of applying for a loan to purchase a real estate, the title deed of the real estate, water or electricity bills must also be submitted to the bank. Banks determine the loans they give to foreigners according to the value of the relevant real estate.
Foreigners working in Turkey are required to submit their salary slips and documents showing their 3-month income to the bank. With this condition, it is not possible for unemployed foreigners to take out loans. However, in order to facilitate the situation, it is also possible to request that foreigners who are unemployed in Turkey submit the statements showing the account movements of their bank accounts in their own countries.
Finally, a photocopy of the passport must be submitted along with the application form. Documents required from foreigners, depending on loan types, are listed below.
What are the Documents Required from Foreigners to Apply for Consumer Loans?
Personal finance credit
Foreigners can apply for consumer loans to meet their cash needs. For this, the customer must initially open a bank account. The documents and information required from foreigners to submit to the bank in order to apply for a consumer loan are listed below:
- A copy of the passport
- Income Certificate
- Work and Residence Permit
- Local resident guarantor or cash collateral
Transport Credit
Foreigners can apply for a car loan to buy a new car. For this, the customer must initially open a bank account. The documents and information required from foreigners to submit to the bank in order to apply for a vehicle loan are listed below:
- A copy of the passport
- Proforma invoice of the car to be purchased
- Income Certificate
- Work and Residence Permit
- Local resident guarantor or cash collateral
Housing Loan
When foreigners want to buy a new house in Turkey, they can apply for a housing loan for their financing needs. For this, the customer must initially open a bank account. The documents and information required from foreigners to submit to the bank in order to apply for a housing loan are listed below:
- A copy of the passport
- Title deed of the real estate to be purchased
- Guarantee
- Local resident guarantor or cash collateral
- Income Certificate
- Work and Residence Permit
NOTE: Apart from the above-mentioned documents, the documents that may be requested by the banks may differ. Before applying for any loan, foreigners must confirm the application documents on the website of the relevant bank.
Which Turkish Banks Give Credit to Foreigners?
Banks that give loans to foreigners are divided into foreign-based banks and Turkey-based banks. While almost all foreign-based banks give loans to foreigners, only Ziraat Bank, Vakıfbank, İşbank, Garanti Bank, QNB Finansbank, Akbank, Halkbank, among Turkish banks, give loans to foreigners.
