Loan application

Extension of the duration of the application for a low-interest loan for agricultural production

Extension of the duration of the application for a low-interest loan for agricultural production

The Presidential Decision amending the Decision on providing low-interest investment and operating credit for agricultural production by Ziraat Bank and agricultural credit cooperatives has been published in the Official Gazette.

Accordingly, the duration of the application for the low interest loan for agricultural production ended on December 31, 2022 and this period was extended until December 31, 2023 with the decision.

Thus, agricultural loans can be extended by Ziraat Bank and agricultural credit cooperatives until December 31, 2023, by reducing the prevailing interest rates applied to agricultural loans by the bank, at rates determined by the loan subjects. , and not exceeding credit limits.

On the other hand, a new article concerning the irrigation syndicates which will use the said loan has been added to the decision.

SUPPORT CREDIT FOR IRRIGATION ASSOCIATIONS FOR SOLAR INVESTMENTS

Thus, irrigation syndicates operating in accordance with the provisions of the irrigation syndicate law number 6172 will be able to grant agricultural loans, exclusively for investments in solar energy systems that they will carry out in order to meet electricity needs. facilities to extract water from licensed wells and other sources and distribute that water to their members.

Produce and/or supply the electrical energy necessary for the said irrigation syndicates to extract water from authorized wells and distribute this water to their members, produce the electrical energy necessary for the irrigation system used/to be used by the natural person or agricultural moral producers using/will use a modern pressurized irrigation system, and the investment loans for solar energy investments they will make to meet/or to meet will be assessed under the title “Investments in a modern pressurized irrigation system”.

Thus, irrigators’ unions and agricultural producers will have the opportunity to use loans with an upper limit of 7.5 million TL with an interest rate of up to one hundred percent for solar energy investments.

Agricultural loans granted may be postponed or repaid in installments from the due date/accounting period/disbursement date if it is determined that the commodities/assets subject to the loan are affected by natural disasters that may occur. until December 31, 2023.

PRODUCTION PROBLEMS AND CREDIT LIMITS

The upper loan limit in dairy and combined cattle breeding has been increased to 40 million lira, in heifer and breeding cattle breeding to 20 million lira, in sheep breeding to 25 million lira, in beekeeping at 5 million lira, in the poultry industry at 7.5 million lira. million lire, and in the aquaculture sector at 15 million lire.

The upper limit of the zero-interest loan in traditional animal production and traditional crop production has been raised to 5 million lira.

The decision also included information on updated upper credit limits for production issues such as controlled greenhouse cultivation, forage crop production, fruit growing and viticulture, agricultural machinery, contract production and private forestry.

The decision will enter into force on the date of its publication, to be applied to loans to be extended from the date of publication.

Producers, who benefited from investment credits before the publication of the decision, but could not use all or part of their credits, will benefit from the discount rates and caps under this decision until the end of 2022 for the part that they will not be able to use. .