New decision from BRSA on vehicle loans: Installment limits changed

The Banking Regulation and Supervision Agency (BRSA) has made changes to the limits regarding vehicle loans with a new decision.

The following was noted in the BRSA's decision regarding the matter:

"In accordance with the fourth paragraph of Article 12 of the Regulation on Credit Operations of Banks (Credit Regulation) and the fifth paragraph of Article 11/A of the Regulation on the Establishment and Operating Principles of Financial Leasing, Factoring and Financing Companies (Financial Institutions Regulation),

For only electric-powered vehicles produced by taxpayers covered by the Provisional Article 12 of the Corporate Tax Law No. 5520 dated 13.06.2006;

a) It has been decided that the loan maturity limits regulated in the third paragraph of Article 12 of the Credit Regulation and the second paragraph of Article 11/A of the Financial Institutions Regulation shall be determined as follows:

48 months for loans used for the purchase of vehicles with a final invoice value of 1 million 600 thousand Turkish Liras and below,

36 months for loans used for the purchase of vehicles with a final invoice value above 1 million 600 thousand Turkish Liras and not exceeding 3 million Turkish Liras,

24 months for loans used for the purchase of vehicles with a final invoice value above 3 million Turkish Liras and not exceeding 4 million Turkish Liras,

12 months for loans used for the purchase of vehicles with a final invoice value above 4 million Turkish Liras and not exceeding 5 million Turkish Liras,

Excluding vehicle-collateralized loans regulated in the second paragraph of Article 12 of the Credit Regulation and the first paragraph of Article 11/A of the Financial Institutions Regulation, for vehicle loans to be used by consumers for the acquisition of passenger vehicles or for financial leasing transactions, the ratio of the loan amount to the vehicle value shall be determined as follows:

Not to exceed 70 percent for vehicles with a final invoice value of 1 million 600 thousand Turkish Liras and below,

Not to exceed 50 percent for vehicles with a final invoice value above 1 million 600 thousand Turkish Liras and not exceeding 3 million Turkish Liras,

Not to exceed 30 percent for vehicles with a final invoice value above 3 million Turkish Liras and not exceeding 4 million Turkish Liras,

Not to exceed 20 percent for vehicles with a final invoice value above 4 million Turkish Liras and not exceeding 5 million Turkish Liras,

Determined as zero percent for vehicles with a final invoice value above 5 million Turkish Liras,

It has been decided that this Decision shall be announced to the Associations of Institutions and published on the Agency's website."

News Source: 12punto