How Turkish SMEs access loans through banks, KOSGEB, Halkbank, and alternative lending platforms.
Turkey's small business lending ecosystem combines commercial bank lending, government-backed programs, and development finance institutions. For Turkish SMEs, navigating this landscape effectively requires understanding the full range of available options.
Turkey's major banks — İş Bankası, Garanti BBVA, Akbank, Yapı Kredi, and Halkbank — offer business loans, overdraft facilities, and trade finance to SMEs. Halkbank is particularly important for SME lending, as it is a government-owned bank with a specific mandate to support small businesses. Interest rates on business loans are influenced by the Central Bank of Turkey's policy rate.
KOSGEB's subsidised loan programs provide Turkish SMEs with access to below-market interest rate financing. These programs are particularly valuable in Turkey's high-inflation environment, where market interest rates can be prohibitively expensive for small businesses.
The KGF (Kredi Garanti Fonu — Credit Guarantee Fund) provides guarantees on bank loans to Turkish SMEs, covering up to 85% of the loan amount. This guarantee enables banks to lend to SMEs that lack sufficient collateral, significantly expanding credit access for small businesses. KGF has guaranteed hundreds of billions of lira in loans to Turkish SMEs.
KOSGEB provides subsidised loans to Turkish SMEs through its various support programs. These loans offer below-market interest rates and flexible repayment terms, making them particularly attractive for businesses in Turkey's high-inflation environment. KOSGEB loans are available for working capital, investment, and R&D purposes.
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