On March 1, 2021, the maximum fees that the banks can collect from their corporate clients in relation to loans have been increased by an amendment to the Communiqué No. 2020/4 regarding the Restriction on Lender Fees (please see our client alert on the original version of the Communiqué at: https://www.cergun.av.tr/publication/communique-on-the-restriction-to-lender-fees/).
Through the recent amendments, the maximum rates of the disbursement and prepayment fees have been increased as follows:
- the disbursement fee will not exceed 1,10% of the loan amount (prior to the amendment, this ratio was 1%); and
- the maximum prepayment fee has been increased as follows:
|For loans disbursed before 01/03/2021||For loans disbursed after 01/03/2021|
|The prepayment fee will not exceed||The prepayment fee will not exceed|
|For loans with a remaining maturity of 24 months or less||1%||2%|
|For loans with a remaining maturity of more than 24 months||2%||2% + 1% for each additional year (following the first 24 months)|
For loan denominated in or indexed to a foreign currency, maximum prepayment fee will be calculated by increasing the above-stated rate for 1%.
The banks will be obliged to accept the prepayment requests of their corporate clients in case the prepayment is requested for the entire loan for the loans disbursed after 01/03/2021.
This information is provided for your convenience and does not constitute legal advice. It is prepared for the general information of our clients and other interested persons. This should not be acted upon in any specific situation without appropriate legal advice. This information is protected by copyright and may not be reproduced or translated without the prior written permission of Ergün Avukatlık Bürosu.