Individual loans in Türkiye rise 46% in one year

As of the end of October 2024, individual loans extended by banks and non-bank financial institutions in Türkiye rose by 46%, reaching ₺3.6 trillion ($103.01 billion).

According to a report released by the Risk Center of the Banks Association of Türkiye, the number of individuals with credit debt in Türkiye, among the population of over 85 million, increased by 2.1 million from 2023, reaching 41.37 million with an average loan balance of ₺88,155, by October in 2024.

Individual loans comprised 47% credit cards, 27% consumer loans, 13% housing loans, 2% vehicle loans and 11% overdraft accounts.

Türkiye’s key individual loan statistics by October 2024

• The number of individuals with credit card debt rose by 2.2 million year-on-year, reaching 37.3 million. The average credit card debt per person increased by 58% in a year, to ₺44,681.
• While 99% of individual loans were provided by banks, ₺22 billion worth of loans were extended by financing and leasing companies, of which ₺12.8 billion were vehicle loans.
• In October, 216,000 individuals used a credit card for the first time, 168,000 opened an overdraft account, 134,000 took out a consumer loan, and 19,000 obtained a housing loan. Additionally, 17,000 individuals used a vehicle loan for the first time.
• Reports indicated that 190,000 individuals failed to repay their credit debts in October, with the total figure for the year reaching 1.54 million.
• The ratio of non-performing loans to individual lending stood at 2.7%.

Individual loan statistics by provinces

• As of October 2024, Istanbul (28%), Ankara (9%), and Izmir (7%) accounted for 44% of individual loans.
• Konya (81.6%), Diyarbakir (78.4%), and Mersin (77.9%) recorded the highest increases in individual loan balances over the past year.
• Meanwhile, the cities with the highest increases in individual credit risk were Konya (67.4%), Nevsehir (61.9%), and Sirnak (60.9%).