Turkey's most indebted provinces
The Banking Regulation and Supervision Agency (BDDK) regularly releases data on credit debts to banks based on various metrics. In light of the latest data, the cities with the highest debt to banks have been identified.
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In Turkey, borrowing remains as high as the tendency to save. Those who borrow by using bank loans defer their debt using installment payment options.
Those who find the opportunity to pay off large amounts of credit in small installments by dividing them into long terms meet their needs by taking out loans.
This situation applies not only to citizens but also to companies. In an inflationary environment, long-term and relatively low-interest loans can be attractive.
The Banking Regulation and Supervision Agency also ranks the most indebted cities within 3-month periods.
According to BDDK data, Istanbul, the city with the largest population in Turkey, is at the top with 3.7 trillion liras. Istanbul is followed by Ankara with a credit debt of 1.4 trillion liras. Izmir took third place with 521 billion liras.
PROVINCES WITH THE LEAST DEBT
Bayburt ranked first among the provinces with the least debt, with 2.8 billion liras. Bayburt was followed by Tunceli with 4 billion liras.
WHAT IS THE STATUS OF INTEREST RATES ON LOANS?
Interest rates on consumer loans vary between 3 and 4 percent. To explain with another example, when a 100 thousand lira loan is taken out, the monthly payment is around 6,750 liras at a rate of 3.29 percent over a 24-month term.
For 1 million lira housing loans with a 120-month term, interest rates average 3.39 percent, and the monthly payment is 34,532 liras.
For 300 thousand lira vehicle loans with a 48-month term, the average interest rate is around 3.5 percent, and the monthly payment is around 15,500 liras.