Environment, Urbanization and Climate Change Minister Murat Kurum, in his statement on his Twitter account, stated that a new era has been entered in urban transformation, and that they have taken the step to accelerate the process, and that they have increased the credit limit from 600 thousand liras to 1 million 250 thousand liras.
The support packages prepared by the Ministry of Environment, Urbanization and Climate Change and the Ministry of Treasury and Finance for the owners, contractors and housing producers for urban transformation were announced.
According to the statement made by the Ministry, work on the construction of new structures and urban transformation continues rapidly, and appropriate financing opportunities are provided in this context.
In addition to the supports previously put into use, it is now aimed to accelerate the transformation and to be better prepared for possible natural disasters by providing support for the urban transformation of buildings located in risky areas or at risk.
Within the scope of the Urban Transformation Financing Package, support packages were prepared for the owners, contractors and housing producers of buildings located in risky areas or at risk.
Financing opportunities will be offered up to 1 million 250 thousand liras per person.
Within the scope of the financing package offered to the owners in coordination by the Ministry of Environment, Urbanization and Climate Change and the Ministry of Treasury and Finance, financing opportunities of up to 1 million 250 thousand liras will be provided per person, and up to 840 basis points of the financing cost will be covered by the Ministry of Treasury and Finance. With the package, an important convenience will be offered for the improvement of the living conditions of the citizens.
In addition, the Treasury-supported surety system will be included in the scope, and contractors and housing manufacturers will be provided with access to financing under favorable conditions during the urban transformation process.
While the compensation rate applied so far within the scope of the Treasury-backed surety system has been increased from 7 percent to 9 percent in this package, the guarantee rates authorized by the Ministry of Treasury and Finance in the legislation will be used at the maximum level. With this financing package provided under favorable conditions, financing opportunities of up to 12 million TL will be offered with a total maturity of 48 months, including a 250-month grace period. In this direction, the 50 billion lira surety limit will be put into use.
Loan terms and interest rates
Within the scope of the package, the interest rate will be applied as 1,49 percent, but the interest rate to be paid by the beneficiaries will be less with the state support provided.
In this context, the interest rate to be paid by the beneficiary for the first house in housing construction loans to be offered with a maturity of 10 years is 0,79 percent, the state contribution rate is 0,70 percent, and the interest rate to be paid by the beneficiary up to a maximum of 3 million TL for the following houses is 0,89 percent. The state contribution rate will be applied as 0,60 percent. In the housing loan, the beneficiary will pay 0,79 percent interest and the state will undertake 0,70 percent.
The interest amount to be paid by the beneficiary will be 800 percent, and the state contribution will be 7 percent in the workplace construction loans, which will be offered with a 350-year maturity of up to 1,09 thousand liras, and acquisition loans up to 0,40 thousand liras.
On the other hand, within the scope of the package, the interest rate to be paid by the beneficiaries for loans up to 320 thousand liras, which will also be able to use retrofit loans, was determined as 0,99 percent and the state contribution rate as 0,40 percent.
Applications will start next week with public banks. Later, private banks are expected to join the system. The loan application can be made within 3 years from the demolition.
The guarantee rate to be provided to contractors and housing producers will be 90 percent for SMEs and 85 percent for non-SME businesses. SMEs will be able to use loans up to a maximum of 100 million liras, while others can use up to 250 million liras.