İş Bank became one of the first lenders to slash the rates further, followed by other major banks, including Akbank, Yapı Kredi Bank and Garanti Bank.
İş Bank CEO Adnan Bali said in a press meeting that revealed new rates, the government has taken a number of measures to revive economic activity and would follow policies in line with these measures, on Monday.
“The financial system must act in a constructive manner,” he said. Bali noted that İş Bank decided to slash rates after a one-week preparation process.
The bank cut its rates for housing loans from 0.95 percent to 0.9 percent, for automotive loans from 1.18 percent to 1.1 percent and for consumer loans 1.39-1.2 percent to 1.35-1.15 percent. The rates for small and medium sized enterprises were also cut by the bank.
Akbank also cut its rates for housing loans for up to two years in installments to 0.9 percent. For five years of installment, the rate will be 0.93, while the rate was set at 0.95 percent for seven years and 0.97 percent for more than seven years.
Yapı Kredi slashed its rates for housing loans with installment due between one and six months to 0.9 percent and 0.92 percent between 61 and 120 months in installments. For consumer loans that are more than 25,000 Turkish Liras, Yapı Kredi will offer rates that start from 1.19 percent.
Vakıf Bank also reduced rates for consumer loans from 1.26 percent to 1.15 percent and for automotive loans from 1.15 percent to 1.1 percent. The lender also slashed its credit card rates from 2.02 percent to 1.98 percent. TEB also has made significant decreases in its interest rates.