Turkish Grameen Microfinance Program (TGMP) is a non-profit economic institution. Instead of traditional “donation” and “charity” activities to alleviate poverty in Türkiye, TGMP offers “microcredit” services. The purpose of microcredit system is to help financially challenged women to engage in sustainable income-generating activities and contribute to their family budgets.
Unlike commercial banks, microcredit is a service offered to micro-entrepreneurs without requiring collateral or any type of documents other than their ID cards.
Introductory Loan aims to make a smooth transition for financially challenged women who are ready to engage in income-generating activities and introduced to the microcredit system for the first time. Introductory Loan has a minimum limit of TRY 1,000 and upper limit of TRY 3,000 to be repaid in 33 weeks with 10% service fee including Banking and Insurance Taxes (BITT).
For example, a micro-entrepreneur who receives a TRY 3,000 Introductory Loan will repay her loan as TRY 3,300 at the end of the 33rd week by paying TRY 100 in weekly installments.
- Business Loan is a type of loan with a minimum limit of TRY 1.000 and an upper limit of TRY 7.000. Business Loan is collected in 40 weeks with a total service fee of 15% including BITT..
For example, a micro-entrepreneur who receives TRY 6,000 Business Loan will repay her loan as TRY 6,900 at the end of the 40th week by paying TRY 172,5 in weekly installments.
- Basic Loan is a type of loan with a minimum limit of TRY 1,000 and an upper limit of TRY 10,000 with a grace period of 4 weeks after the loan is disbursed. Basic Loan is collected in 48 weeks with a total service fee of 20% including BITT.
For example, a micro-entrepreneur who receives TRY 8.000 Basic Loan will repay her loan as TRY 9.600 at the end of 48th week by paying TRY 200 in weekly installments.
- Development Loan is a type of loan given to micro-entrepreneurs who are in the micro-credit system for 5 years and over, who use their financing in line with their micro-credit purpose and contribute to their family and national economy by engaging in income-generating activities. For Development Loan, the minimum limit is TRY 7,000 and the upper limit is TRY 10,000. Development Loan is collected in 46 weeks with a 15% service fee including BITT.
For example, a micro-entrepreneur who receives a TRY 7.000 Development Loan will repay her loan as TRY 8,050 at the end of the 46th week by paying TRY 175 in weekly installments.
- Entrepreneurial Loan is a type of loan given to micro-entrepreneurs who are taxpayers and have proven their success by using their micro-credit financing to grow their business in addition to the loan they have received. Entrepreneurial Loan has a minimum limit of TRY 1,000 and upper limit of TRY 10,000 collected in 48 weeks with 20% service fee including BITT..
For example, a micro-entrepreneur who receives TRY 5,000 Entrepreneurial Loan will repay her loan as TRY 6,000 at the end of the 48th week by paying TRY 125 in weekly installments.
- Growth/Happytalist Loan is a type of loan given to micro-entrepreneurs who have increased their income above the poverty threshold and by experiencing this happiness, are motivated to become a trader and want to grow their commercial activities. Growth / Happytalist Loan is provided for micro-entrepreneurs who have benefited from Fundamental Loans (Basic Loan, Business Loan and Development Loan) with a total limit of TRY 10,000. Growth / Happytalist Loan has a minimum limit of TRY 10,000 and upper limit of TRY 20,000 and collected in 60 weeks. In order to benefit from Growth / Happytalist Loan, micro-entrepreneurs must be registered to Chamber of Commerce or Chamber of Merchants and Craftsmen.
For example, a micro-entrepreneur who receives TRY 10,000 Growth / Happytalist Loan will repay her loan as TRY 12,000 at the end of the 60th week by paying TRY 200 in weekly installments.
Social Business Loans
Social Development Loan: In addition to other loan types, acting with the slogan “Social Business for Good”, Social Development Loan is a type of loan given to micro-entrepreneurs who wish to involve in commercial activities in order to generate additional income. Social Development Loan includes different products ranging from cleaning products to cosmetics.
Technology Loan is a type of loan given to micro-entrepreneurs who are the most affected by the digital divide problem in Turkey are provided with financial support to access communication tools via Technology Loan. Financially challenged women who own a smart phone via Technology Loan repay their loans with service fees.
Social Development Loans Service Fee Rates and Repayment Weeks
|Social Development Loans Service Fee Rates and Repayment Weeks|
|Price of Product||Service Fee including BITT||Repayment Weeks|
|TRY 500 and under||5%||(25 Weeks)|
|TRY 500 – 1,000||10%||(33 Weeks)|
|TRY 1,001 – 6,000||15%||(46 Weeks)|
|TRY 6,001 and above||20%||(60 Weeks)|
Micro-insurance: Micro-insurance is a personal accident insurance that provides coverage in cases of death in consequence of an accident, permanent disabilities, and natural disasters such as earthquakes. Micro-insurance guarantees micro-entrepreneurs up to TRY 10.000 by paying only TRY 8 per year.
Micro-housing: Micro-housing is a house insurance that provides micro-entrepreneurs coverage for damages caused by fire, flood, storms and other natural disasters up to TRY 15.000 for homeowners and TRY 10.000 for tenants by paying only TRY 12 per year.
Voluntary Savings: Low income-women are encouraged to deposit at least TRY 1 per week into their voluntary savings accounts in order to raise awareness of saving.