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Car Loan from a Bank

Dear All,

What are the rules to obtain a bank loan for a used car?

1. How old can the car be?
2. What is the maximum amount that can be given or how do they calculate the amount?
3. What paperwork is needed?
4. How long does one have to be working to qualify to get credit?

If there is anything else that I have missed I would be grateful if someone can enlighten me.


Hey  Yavorskyi, sir! I am not being contentious, but wouldn't you agree that the best source for obtaining accurate used auto-loan information, is, in fact, a "banker" that provides such loans?  :cool:

Yes, perhaps it is the best place, however, I wanted to hear from people who actually did obtain a loan from banks here. The banking system here is let's say - not exactly a straight forward one to say the least.

Ok, I got it. :top:

Hi Yavorskyi,

I tried to answer each one of them;

1. How old can the car be?

This is something that the bank will decide though. However the market practice in this usually says that the car should be at most 8 years old. Remember, this could be asked to be less than that by some specific banks.

2. What is the maximum amount that can be given or how do they calculate the amount?

BDDK(Banking Regulations & Supervision Agency) which is the main regulatory in Turkey has published a new set of rule about 4 years ago on this. Let me explain it with a short example;

Let's say that the car you'd like to buy costs exactly 70k TRY. If you'd like to buy it by using a 2nd hand car loan, the down payment you MUST make is exactly 25k TRY which is calculated like:

The down payment needed for the amount from 0 TRY to 50k TRY: 30% 
The down payment needed for the amount from 50k TRY or above: 50%

Your car was 70k TRY as you will remember. For the first 50k portion, you are supposed to pay the 30% first. And since your car's worth was above 50k, you have to pay the 50% of the amount that exceeds 50k TRY which is only 20k TRY for this case. 50% of it makes 10k TRY.

15k TRY(from the first portion) + 10k TRY(from the second portion): 25k TRY

3. What paperwork is needed?

This may also vary but in general;

*Original and photocopy of the ID card (National ID, Driver's License or Passport),
*A document affirming the residence address in Turkey,
*Income Statement,
*An invoice or a notarized contract of sale,
*Residence permit and work permit in Turkey (for foreigners only). Residence and work permit should be valid during the entire loan period,
*Turkish guarantor is required (for foreigners only),

4. How long does one have to be working to qualify to get credit?

This may also vary from bank to bank. There is no law saying anything specific on this.

Most banks in Turkey use a kind of system called KKB (Credit Bureau) which is a pool system that evaluates your payment performances. All member banks share your payment details on a monthly basis with this pool. And they check the results out each time before they grant you any banking instrument such as overdraft account, credit card, loan, cheque etc. What i mean is that if your records in this pool (if there is any. this is completely dependent on whether you have/had any banking instrument with a Turkey based member bank before) are well enough, there shouldnt be any problem with getting credited.

If your score in this pool is zero which means that you had none of these before, your application may be put on hold for a while(so that you can get a credit card to start creating your own score) until the bank is convinced that you will be able to make all your payments in time without having any delays etc. can be used to track this important score.

Hope all these will help by giving at least the initial idea needed,

Thank you very much, I wish more people on this forum would reply like you did.

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