The first interest-free financing system supported by a public bank was implemented. Two models are offered to those who want to realize their home, vehicle and workplace dreams.
With the launch of Emlak Katılım Savings Finance Joint Stock Company, the first interest-free financing system supported by a public bank was implemented. Offering two different models: lottery and sequence-determined, this system offers an alternative to traditional loans for citizens who want to realize their home, vehicle and workplace dreams.
What are Savings Financing Models?
Savings financing models are generally considered within the scope of interest-free financing methods and enable individuals to meet their needs such as housing and vehicles through solidarity and joint savings. The most well-known examples in Türkiye are savings finance companies.
The basic logic of these systems works as follows:
The process of participation and group creation in the system is structured very transparently. The customer is included in a savings plan based on the amount of the goods or services he wants to buy.
Generally, customers are brought together in groups with those who want to buy goods/services for similar amounts.
The number of groups (e.g. 60 months, 120 months) is generally linked to the installment period.
The main advantage of this model is that, unlike traditional loans, no interest is charged. Instead, a certain fee is charged under the name of organization fee.
For example, if the organization fee is applied at 8% for a house worth 500,000 TL, a cost of 40,000 TL occurs. When you spread this fee over installments, the monthly payment is around 9,000 TL.
Raffle Model: Early Ownership Based on Chance
In the lottery model, a draw is made among the people in the group every month. Delivery time depends entirely on luck. It may occur in the first month or in the 50th month. On average, it is likely to occur around 30 months (middle of the term).
The biggest advantage of this model is that individuals participating in the lottery will stay in their homes for a long time if they leave early. It is also possible to pay in low installments. You can own a house/vehicle and continue paying installments.
The disadvantage of this model is that it depends on luck. If it arrives late, applicants may have to wait a long time. This can be challenging for those who want to plan. A long waiting period may not be appropriate, especially for those who need urgent housing.
The suitable person profile for the raffle model is generally people who think "I'll try my luck, it would be great if it comes out early", are patient and have financial flexibility. Individuals who have a high risk-taking capacity and can tolerate uncertainty prefer this model.
Order Detection Model: Planned Delivery Advantage
The sequence-determined model is a more planned method. At first, it is determined which month everyone will receive delivery. In a group of 60 people, the 1st person receives delivery in the first month, and the 60th person receives delivery in the last month.
The most important advantage of this system is ease of planning. You know from the beginning when you will buy a house/vehicle and you can organize your life accordingly. According to Makro Life Automatic Real Estate Valuation system data, you can have the opportunity to make purchases at the appropriate time by following price changes in the real estate market.
Among the disadvantages of the sequence detection model is the lack of possibility of early delivery. Those who are lucky in the lottery can receive it even in the 2nd month, but in the order-determined model, for example, if they are in the 45th place, they have to wait for the 45th month. In other words, the possibility of "getting a house early" due to chance is eliminated.
The suitable profile for this model is people who say "I want to know exactly when I will buy a house/car" and want to act in a planned manner. Individuals who do not like uncertainty and want everything to be under control can consider this option.
Comparison of Savings Financing Models
feature
Raffle Model
Sequence Detection Model
Delivery Time
It may occur in the first month or in the last month. Average delivery occurs in the middle of the term.
It is certain which month you will initially receive delivery.
Advantage
If it comes out early, you will own a house/car and continue paying installments.
It guarantees exact delivery in the specified month.
Disadvantage
There is a risk of late release, you can wait 4-5 years.
You have no chance of early delivery, you have to wait in line.
Organization Fee
Yes (between 7-10%).
Yes (between 7-10%).
Psychological Impact
There may be uncertainty stress.
The psychological impact of a long waiting period may be experienced.
According to Makro Life market analysis data, model selection can be made by taking into account the changing trends of real estate prices. While early delivery may be advantageous in periods with a high price increase tendency, planned delivery may be preferred in stable periods.
Application Conditions and System Requirements
Application conditions for Emlak Katılım Savings Financing system are arranged as follows:
Age requirement: All citizens over the age of 18 can apply to the system. There is no upper age limit.
Income limit: There is no income limit. Low-income and high-income earners can participate in the system.
Real estate type: There is no requirement for a new house, vehicle or workplace in the system. A second-hand vehicle, home or workplace can also be purchased. This may be especially advantageous for citizens with limited budgets.
Payment capacity: Installments and maturity are determined according to the individuals' ability to pay. Plans can be made appropriate to the financial situation.
Group membership: Groups are created with people with similar amounts and needs. In this way, a fair system is established.
New savings financing models offer an alternative road map for those who want to realize their dream of owning a home. Model selection should be made according to individual needs.
Emlak Katılım Savings Financing system has become an important option for those looking for an alternative to traditional credit systems. It can offer attractive opportunities, especially for those looking for interest-free financing. It is important to evaluate your personal financial situation, patience capacity and risk taking situations before joining the system.
Savings Financing System and Frequently Asked Questions
Is it possible to exit early from the savings financing system?
In case of early departure from the group, penalties are usually imposed and the full amount accumulated may not be refunded. It is necessary to examine the contract terms carefully.
When is the organization fee paid?
The organization fee is usually spread over installments and collected with monthly payments. Cash payment option may also be available.
How is the number of groups determined?
The number of groups is created according to the maturity period. A group of 60 people is established over a 60-month period. One person receives a delivery each month.
How does the valuation process work when purchasing a second-hand vehicle or house?
For second-hand purchases, calculations are made based on market value. Expertise reports and valuation procedures are carried out by the company.
Is the system reliable, what controls are there?
Companies that are subsidiaries of well-established public banks, such as Emlak Katılım, operate under legal supervision. It is subject to the regulations of BRSA and relevant institutions.
