Manufacturing Sector Receives 250 Billion TL Financing Package: Credit Terms and Employer Benefits

The manufacturing industry has unlocked a 250 billion TL financing package as of September 1, forcing large and SME firms to recalculate capital costs amid sweeping improvements in interest rates and repayment terms.

250 Billion TL Support Package Unveiled for Manufacturing

Industry and Technology Minister Mehmet Fatih Kacır highlighted that loan ceilings have risen from 50 million TL to 150 million TL, targeting capital‑intensive large‑scale producers.

Critical Shifts in Credit Terms

■Fixed‑cost loans: 37% fixed interest rate

■Variable‑cost loans: TLREF + 1 point

■Grace period: 6 months

■Maximum tenor: up to 36 months

Fresh Breathing Room for SMEs

■Guarantee support: State‑backed collateral

■Financing cost subsidy: If firms maintain average employment levels from Jan‑Jun 2026 through Jul‑Dec, the government will cover 12 points of the financing cost

■Annual effective cost: Fixed‑rate loans could drop to 25% per year

Financing Cost and Government Contribution

Minister Kacır announced a 12‑point cost subsidy for firms preserving jobs, aiming to bring the annual cost of fixed‑rate loans down to 25%. This move seeks to ease liquidity pressure and spur investment in the sector.

Banking Process and Implementation Timeline

Following applications, banks that have signed protocols will commence credit assessment. Approved firms will gain immediate access to the allocated financing.

Zeynep Turan – Consumer Financing & Mortgage Credit Strategist: "While the package is a clear signal of Turkey’s push to revive its manufacturing base, the interest rates remain steep and loan fees lack transparency. Banks must slash processing fees and align credit limits with actual labor costs for consumers and SMEs to truly benefit. Otherwise, the state’s 12‑point subsidy will be insufficient to offset the high fixed rates, limiting the expected cost reduction."