The Turkish banking sector will postpone the loan installments, interest and principal of companies and individual customers with payment difficulties for 3 months at current interest rates.
The banking sector has launched support packages to help companies, tradesmen and individuals overcome the short-term financial problems that the new type of coronavirus (Covid-19) epidemic will cause.
According to the information AA correspondent received from banking sources, banks will postpone the loan installments, interest and principal of companies and individual customers with payment difficulties for 3 months. There are also banks that offer installments of up to 12 or 24 months, with a grace period of 6 months, depending on the customer. These postponements will be postponed using current interest rates.
There will be a 3-month grace period with the postponement of payments for March, April and May. Payments will be rearranged to start again in June after the installment grace period.
Public banks will implement a practice that will not strain their customers’ ability to pay by dividing the interest amount calculated for the postponed 3-month period equally into the remaining installments. While the installments of the loan will be postponed for 3 months, the final maturity of the loan will also be postponed for 3 months.
BRSA removed the obstacle to the extension of the final maturity
The Banking Regulation and Supervision Agency (BRSA) also decided that the original maturity will not be limiting in requests for postponement of principal, interest and installment payments in vehicle and consumer loans, thus removing the obstacle to extending the final maturity while making installment postponements.
Since some private banks add the entire interest amount calculated for the postponed period to the first installment following the 3-month grace period, customers may soon face a large payment that may strain their ability to pay.
Some banks offer the opportunity to pay credit card and Credit Deposit Account (KMH) debts with an installment payment plan, with a grace period of up to 3 months and 12 or 24 months maturity.
Bankers stated that applications can be made through internet banking, mobile banking channels and customer communication center without going to branches, although it varies from bank to bank.
New installment amount in case of postponement
One wonders what the cost of banks’ loan installment deferrals will be to customers. For example, when a consumer loan of 10 thousand liras with a maturity of 60 months and an interest rate of 1.05 percent is extended, the installment amount is 238 liras.
When this loan is postponed for 3 months, the 318 lira interest to be paid for the first 3 months can be paid in installments or equally distributed over the remaining maturities.
If the interest for the postponed 3-month period is paid together with the first installment, the first installment following the postponement period exceeds 500 lira.
If the 3-month accumulated interest is spread over the remaining maturity, as in public banks, the monthly installment difference is only 15 lira. As the loan amount increases, the interest amount for the 3-month period also increases.
Source: https://www.aa.com.tr/tr/ekonomi/bankalar-kredi-otelemesinin-cari-faiz-oranlarini-çokacak/1783668
