Yes. No law bars foreigners from Turkish bank loans, but each bank sets its own criteria and most lend to residents with a residence permit, tax number and verifiable income. Loans are in Turkish Lira. Under BDDK Decision No. 11364 of 29 January 2026, a housing loan may reach 90 to 20 percent of the appraised value, depending on value and energy class, cut by 75 percent if you already own a home. Law No. 6502 gives a 14 day withdrawal right and caps early repayment compensation on fixed rate mortgages at 1 or 2 percent.
Foreigners who live in Türkiye, or who are buying a home here, regularly ask whether a Turkish bank will lend to them and on what terms. The rules changed again this year. On 29 January 2026 the Banking Regulation and Supervision Agency, BDDK, issued Board Decision No. 11364, which removed the distinction between new and second hand homes and now sets the maximum housing loan according to the value of the home and its energy class, from 90 percent of the value down to 20 percent. The 2023 rule that cuts these ratios by 75 percent for buyers who already own a home in Türkiye still applies, and general purpose consumer loans above 250,000 Turkish Lira have been limited to 12 months since February 2025. This article explains what banks ask of foreign applicants, how consumer and housing loans are protected under the Consumer Protection Law, Law No. 6502, how the BDDK limits work in practice, what a guarantor actually signs, and what happens if a borrower leaves Türkiye with the loan unpaid.
No Turkish statute prohibits a bank from lending to a foreign national. The consumer protections of Law No. 6502 apply to any natural person who borrows for purposes outside a trade or profession, whatever their nationality. What decides access in practice is the credit policy of each bank. Most banks lend to foreigners who live in Türkiye with a residence or work permit and who have income that can be verified, while lending to people who live abroad is limited and offered by only some banks, mainly for property purchases secured by a mortgage. A refusal by one bank therefore says little about the next; criteria differ noticeably between banks and change over time.
Many foreign buyers expect a euro or dollar mortgage. Under Decree No. 32 on the Protection of the Value of the Turkish Currency, as amended in June 2009, natural persons resident in Türkiye cannot in principle use foreign currency loans or loans indexed to a foreign currency, apart from the narrow exceptions in the decree. As a result, consumer and housing loans offered by Turkish banks to individuals are in Turkish Lira. A borrower whose income is in another currency carries the exchange rate risk for the whole term, which is a central point when planning repayments.
A residence permit gives the applicant a foreign identity number, yabancı kimlik numarası, an eleven digit number starting with 99 that Turkish institutions use to identify a foreigner. Banks use it to check the credit record and to register the loan. Many banks also look at how long the permit remains valid and how long the applicant has lived in Türkiye, because a loan term longer than the expected stay raises the risk for the bank. These are internal bank criteria, not legal requirements, and they vary from bank to bank.
Article 76 of the Banking Law, Law No. 5411, prohibits banks from opening accounts or providing services to customers who do not document their identity and tax number. A foreigner without a residence permit can obtain a tax number from a tax office with a passport; once a permit is issued, the foreign identity number is used. A Turkish current account is normally opened before the loan, and instalments are collected from it. Our guide on opening a bank account as a foreigner lists the documents.
Employees usually present recent payslips and a social security service record; self employed applicants present tax returns and company documents; retired applicants present pension statements, translated where necessary. Banks check the Turkish credit record through the Risk Centre of the Banks Association of Türkiye. A newcomer with no Turkish credit history is not refused for that reason alone, but banks may ask for a lower loan amount, additional collateral or a guarantor. Foreign income can be accepted, but usually with stricter scrutiny of its regularity.
Article 22 of Law No. 6502 defines a consumer credit contract as one under which a lender grants credit to a consumer in return for interest or a similar benefit, and requires it to be made in writing or at a distance; a lender that failed to make a valid contract cannot later rely on the invalidity against the consumer. Under Article 23, the lender must give the pre contractual information form a reasonable time before signature. The details are set out in the Regulation on Consumer Credit Contracts, published in the Official Gazette of 22 May 2015, No. 29363. A foreign borrower who does not read Turkish should ask for a translation of the form and the contract before signing, because the Turkish version binds.
Under Article 24, the consumer may withdraw from a consumer credit contract within 14 days without giving a reason and without paying a penalty. If the money has already been used, the consumer must repay the principal and the interest accrued for the days used within 30 days of sending the withdrawal notice; otherwise the withdrawal is treated as not made. Since 2022, repaying the whole loan within the withdrawal period counts as withdrawal even without a notice.
Article 25 requires a fixed interest rate in fixed term consumer loans, and Article 26 prohibits changing the terms of a fixed term contract to the consumer's detriment. If the contract omits the contractual interest, the annual percentage rate or the total cost, the credit is used without interest until the end of the term. BDDK also sets maximum terms. Under Board Decision No. 11152 of 13 February 2025, the general maturity limit for consumer loans is 36 months for loans up to 125,000 Turkish Lira, 24 months for loans above 125,000 and up to 250,000 Turkish Lira, and 12 months above 250,000 Turkish Lira. Housing loans are outside these limits.
A housing loan, konut kredisi, falls under the housing finance rules in Articles 32 to 39 of Law No. 6502, which cover credit to acquire a home, financial leasing of a home, credit secured by a home the consumer owns and refinancing of such credit. Article 32 requires written or distance form. The detailed rules are in the Regulation on Housing Finance Contracts, published in the Official Gazette of 28 May 2015, No. 29369.
Article 36 allows the rate to be fixed, variable or a combination. A fixed rate cannot be changed without the consent of both parties. A variable rate may move only on the basis of an index stated in the contract, among reference rates and indices determined by the Central Bank, and the periodic instalment may not exceed the maximum instalment stated at the outset. The bank must explain the likely effects of a variable rate before signature.
Under Article 38, credit linked insurance may be taken out only at the consumer's explicit written request or request on a durable medium, the bank must also offer a contract without such insurance, and it must accept a policy the consumer obtains from an insurer of their own choice. The contract cannot be made conditional on buying unrelated financial products. Under Article 39(1), where an account is opened only for the housing loan, no fee or charge of any kind may be taken for it.
Board Decision No. 11364 of 29 January 2026, issued under Article 12 of the Regulation on Credit Transactions of Banks, sets the maximum loan as a percentage of the value of the home taken as collateral. It applies to consumer loans for buying a home and to other loans secured by a home, except vehicle loans. The energy class is the one shown on the energy performance certificate issued under the Energy Efficiency Law, Law No. 5627.
| Value of the Home | Maximum Loan by Energy Class (A or B / C / Other) |
|---|---|
| Up to 5 million Turkish Lira | 90% / 80% / 70% |
| Over 5 million up to 7 million Turkish Lira | 80% / 70% / 60% |
| Over 7 million up to 10 million Turkish Lira | 70% / 60% / 50% |
| Over 10 million up to 20 million Turkish Lira | 50% / 40% / 30% |
| Over 20 million Turkish Lira | 40% / 30% / 20% |
The value used is the appraised value, ekspertiz değeri, determined by a licensed valuer, not the price agreed with the seller. If the appraisal comes in below the price, the buyer covers the difference from their own funds.
Under Board Decision No. 10656 of 24 August 2023, which Decision No. 11364 keeps in force, the ratio is reduced by 75 percent if the consumer, their spouse or their children under 18 already own at least one home. Homes in villages, and in places that changed from village to neighbourhood status under Law No. 6360, are disregarded, as are shares of 50 percent or less in a single title, unless the person holds shares in more than one home. Decision No. 10849 of 15 February 2024 adds that a single home demolished, or under a demolition decision, as a risky building under Law No. 6306 is also disregarded. Example: a home appraised at 8 million Turkish Lira with energy class C allows a loan of 60 percent, or 4.8 million Turkish Lira; for a buyer who already owns a home, the ratio falls to 15 percent, or 1.2 million Turkish Lira.
The BDDK decisions do not contain a separate ratio for foreigners. A foreign buyer of a home worth more than 20 million Turkish Lira faces the same 40, 30 or 20 percent ceilings as a Turkish citizen. The decisions also do not say whether a home owned abroad counts for the 75 percent reduction; banks check ownership in practice through the Turkish land registry records. A bank may of course apply a lower ratio than the ceiling. For the role of the regulator in general, see our article on the role of BDDK.
The price of a loan is more than its interest rate. Consumers should compare the annual cost rate shown in the pre contractual form, which includes fees and insurance. For housing loans there are also appraisal fees, the mortgage registration at the land registry and the insurance on the property that banks require; our article on mortgage costs in Türkiye and the mortgage expenses calculator show how these add up. Early repayment is a legal right. For consumer loans, Article 27 obliges the lender to reduce interest and other cost elements in proportion to the amount paid early. For housing loans, Article 37 does the same, and where the rate is fixed the contract may provide for early repayment compensation of at most 1 percent of the amount paid early if the remaining term is 36 months or less, and at most 2 percent if it is longer. No compensation may be charged on a variable rate housing loan.
Banks may ask a foreign borrower for a guarantor, kefil, often a Turkish resident with a regular income. Under Article 583 of the Turkish Code of Obligations, Law No. 6098, a suretyship is valid only in writing, and the guarantor must write in their own handwriting the maximum amount of liability, the date and, for a joint and several suretyship, that they accept that capacity. Under Article 584, a married guarantor needs the written consent of the spouse, given before or at signature, subject to limited exceptions. Banks almost always ask for joint and several suretyship, müteselsil kefalet, under which, according to Article 586, the bank may pursue the guarantor without first pursuing the borrower once the borrower is in default and a demand has gone unanswered. A guarantor should therefore treat the debt as their own.
A housing loan is secured by a mortgage, ipotek, registered at the land registry over the home. Under Article 45 of the Enforcement and Bankruptcy Law, Law No. 2004, a creditor whose claim is secured by a pledge generally proceeds first by realising the pledge, and may pursue any shortfall by attachment; for claims arising from housing finance, the same article also allows the creditor to choose attachment directly. Consumer loans may be secured by deposits, a vehicle pledge or a guarantor, depending on the bank.
Missing a single instalment does not make the whole debt due. Under Article 28 of Law No. 6502 for consumer loans, and Article 34 for housing loans, the bank may call in the entire remaining debt only if it has performed its own obligations, the borrower has defaulted on at least two consecutive instalments and the bank has sent a notice of acceleration, muacceliyet ihtarı, giving at least 30 days to pay. Interest, commissions and similar charges are not included when the accelerated instalments are calculated. If the debt is not paid, the bank starts enforcement proceedings, icra takibi: realisation of the mortgage, attachment of bank accounts, salary or other assets, and sale at auction. Our article on debt collection and enforcement explains the stages. Talking to the bank before the second missed instalment, about restructuring or a revised payment plan, is usually far cheaper than defending enforcement.
A private bank debt does not in itself lead to an exit ban. Exit bans arise from criminal proceedings and certain public law situations; for foreigners, Article 9(7) of the Law on Foreigners and International Protection, Law No. 6458, allows a prior permission requirement for re entry only on account of administrative fines and public receivables. Leaving the country does not end the debt, however. The bank may obtain a precautionary attachment, ihtiyati haciz, under Article 257 of Law No. 2004, even before the debt is due, if the debtor has no fixed domicile or is preparing to abscond or hide assets. A loan claim is subject to the general ten year limitation under Article 146 of Law No. 6098, and enforcement based on a judgment becomes time barred only ten years after the last procedural step under Article 39 of Law No. 2004. Any property, account or receivable left in Türkiye remains open to attachment, the guarantor remains liable, and the bank may seek to enforce a Turkish judgment abroad under the law of the borrower's new country. Our article on entry and exit bans explains the difference between the two.
For 2026, consumer disputes worth less than 186,000 Turkish Lira must first go to a consumer arbitration committee under Article 68 of Law No. 6502, as revalued by the Ministry of Trade communiqué published on 23 December 2025. Above that amount, Article 73/A requires an application to a mediator before a case can be filed in the consumer court. A foreign claimant who sues in a Turkish court should also be aware of Article 48 of the Code on Private International and Procedural Law, Law No. 5718, which requires foreigners to provide security for costs unless reciprocity exempts them; see our article on security requirements for foreigners in legal proceedings. Our banking and finance law service covers loan reviews, restructuring and disputes.
Yes. There is no legal ban, but each bank sets its own criteria, and most lend mainly to foreigners who hold a residence permit and verifiable income.
Some banks lend to non residents, mainly for property purchases secured by a mortgage, but the offer is limited and a tax number and Turkish bank account are still required.
Not as a consumer resident in Türkiye; under Decree No. 32 such loans are in principle prohibited, so loans are granted in Turkish Lira.
Between 90 and 20 percent of the appraised value, depending on the value band and energy class under BDDK Decision No. 11364 of 29 January 2026.
It applies if you, your spouse or your children under 18 already own a home, subject to the exclusions for village homes and small shares.
No. The BDDK ratios are the same for foreigners and Turkish citizens, although a bank may apply a lower ratio.
36 months up to 125,000 Turkish Lira, 24 months up to 250,000 Turkish Lira and 12 months above that, under Decision No. 11152.
Yes, within 14 days under Article 24 of Law No. 6502, by repaying the principal and the interest for the days used within 30 days.
Only on a fixed rate loan, and at most 1 percent of the amount paid early, or 2 percent where more than 36 months remain.
Not by law; a bank may ask for one as a condition, and the guarantor's liability is limited to the maximum amount they write by hand.
Yes, in a joint and several suretyship, once you are in default and a demand to you has failed.
Only after two consecutive missed instalments and a written acceleration notice giving at least 30 days to pay.
A private bank debt does not in itself create an exit ban, but assets in Türkiye can be attached and the claim survives for years.
To the bank first, then to the consumer arbitration committee below 186,000 Turkish Lira in 2026, or to mediation and the consumer court above it.
Foreigners can borrow from Turkish banks, and once they do they have the same protections as Turkish consumers: a written contract, a 14 day right of withdrawal, fixed rates in fixed term consumer loans, capped early repayment compensation on housing loans and at least two missed instalments plus a 30 day notice before the whole debt can be called in. The limits that matter most in 2026 are the BDDK loan to value ceilings, which fall from 90 to 20 percent as the value of the home rises and are cut by 75 percent for buyers who already own a home, and the requirement to borrow in Turkish Lira. Leaving Türkiye does not erase a loan, and a guarantor can be pursued directly.
Before you sign a loan or a suretyship, or if a bank has sent an acceleration notice or started enforcement, we can review the contract, check the bank's calculation and act within the legal deadlines. To discuss your situation, contact our legal team.
