KÜHEYLAN HUKUK
What happens if the loan is closed early? Interest Deduction, Early Payment Compensation and the Bank's Obligations. The right to early payment in consumer, vehicle and housing loans within the framework of Law No. 6502, Art. 27 and Art. 37, Consumer Loan Contracts Regulation and Housing Finance Contracts Regulation has been updated as of 2026.
Fluctuation in interest rates, bonuses, or income from the sale of a property often prompt borrowers to pay off the loan before maturity. The consumer can always pay all or part of the loan debt early, and the bank is obliged to reduce the interest for the remaining maturity. There is no fee for early closing on consumer and vehicle loans; In housing loans, early payment compensation can only be claimed in fixed interest contracts and within legal limits. The guide explains how the early repayment amount is calculated, how the payment plan changes after the interim payment, in what cases and in what amount the compensation can be received, and refinancing the loan when the interest rate drops, in the light of the 2026 legislation and the Supreme Court decisions.
The consumer can pay one or more undue installments in advance or pay off the entire loan debt early. In both cases, the lender must make the necessary reduction in interest and other cost elements according to the amount paid early (Article 6502, Article 27; Consumer Credit Agreements Regulation, Article 15/1). The same right in housing loans is also regulated in Article 37 of Law No. 6502. This right cannot be removed by contract or subject to the bank's approval.
When calculating the early payment discount, the date on which the consumer actually makes the payment is taken as basis and this date cannot be changed to the detriment of the consumer (Regulation article 15/2). In loans where all or part of the interest is collected in advance when the loan is extended, the bank is obliged to establish a system to refund the interest received in advance at the contractual interest rate in case of early payment (Art. 15/3).
2. How is the Early Closing Amount Calculated?
Article 16 of the Regulation divides the calculation into two possibilities. If the loan is closed on an installment date, the consumer pays the installment due on that date and the principal debt in the remaining installments. If the closing is made between two installments, interest is added to the principal from the date of the last paid installment until the closing day. In both cases, interest for the remaining maturity and taxes calculated on this interest cannot be claimed from the debtor.
Sum of the remaining 13 installments after the 11th installment is paid Approximately 242.864 TL
Early closing amount on the 11th installment date (remaining principal) Approximately 192.474 TL
Interest that will not be paid with early closing Approximately 50,390 TL and taxes on this interest
The numbers in the table are chosen solely to illustrate the calculation logic. The actual amount varies depending on the interest rate in the contract, tax items and payment schedule. The bank must provide a breakdown of the early closure amount in writing or on a permanent data recorder; This breakdown can be checked by comparing it with the remaining principal in the payment plan.
3. In which loans can early payment compensation be received?
No fee may be charged for early closing or interim payment in consumer loans other than housing loans. The Central Bank's Communiqué No. 2020/7 clearly regulates that no fee other than the early payment compensation specific to housing loans can be charged for the early payment of all or part of the loan and the agreed changes in the interest rate in favor of the consumer (Communiqué art. 10/4). Deductions made under the name of "closing costs", "file closing fees" or "early payment commission" can therefore be refunded.
Early payment compensation in housing loans can only be received if three conditions are met: the interest rate must be fixed, the compensation must be clearly included in the contract and the compensation must not exceed the legal rate. Compensation cannot exceed one percent of the early paid principal amount for loans whose remaining maturity does not exceed thirty-six months, and two percent for loans exceeding thirty-six months. In addition, the compensation amount cannot in any case exceed the total interest deduction to be made to the consumer (Housing Finance Contracts Regulation article 11/4). Early payment compensation cannot be claimed for housing loans with variable interest rates (Article 37/2 of Article 6502).
Although the General Assembly of the Supreme Court of Appeals accepts compensation as legitimate, provided that it is within the limits stipulated by the law and included in the contract, it emphasized that this regulation is aimed at balancing the interests of the consumer and the bank (HGK, 12.12.2019, E.2019/567, K.2019/1346). The Supreme Court also seeks to determine, through expert examination, the deductions made by the bank under different names such as "early closing" or "restructuring" are actually in response to the transaction (13. HD, 06.02.2018, E.2017/6715, K.2018/1268).
Consumer and vehicle loans Cannot be taken; No fee can be charged under any other name. 6502 s.K. Article 27; Communiqué article 10/4
Fixed interest rate housing loan (remaining maturity 36 months or less) Maximum 1% of the principal paid early 6502 s.K. Article 37/2
Fixed interest rate housing loan (remaining maturity more than 36 months) Maximum 2% of the principal paid early 6502 s.K. Article 37/2
commercial credit According to fee regulations for contract and commercial customers loan agreement
The consumer can partially reduce his debt by paying at least one installment before the due date. In this case, the interest accrued from the previous installment date until the payment date is collected, and the remaining amount is deducted directly from the principal. As a rule, the number of remaining installments and payment dates do not change; The installment amount decreases. If the consumer wishes, he can keep the installment amount and request a grace period, or shorten the maturity by agreeing with the bank (Regulation article 17/2). The new payment plan must be provided free of charge and the burden of proof regarding the consumer's demands is on the bank (Art. 17/5-6).
Credit-related insurance: Life and unemployment insurance premiums must be refunded according to the remaining period. This topic is further discussed in the credit insurance guide in the Banking and Financial Law series.
Guarantee: When the principal debt ends, the guarantor's debt ends automatically (TBK article 598/1).
Mortgage and pledge: After the loan is closed, in order to remove the mortgage or vehicle lien, a release letter must be obtained from the bank and the cancellation process must be followed.
"No debt" statement: It can be requested from the bank once free of charge (Communiqué article 10/5).
Risk Center record: Information that the loan has been closed is reflected in the Risk Center; If the record is not updated, a correction must be requested from the bank.
Changing the interest rate, maturity, interest type or currency in a mortgage loan in agreement with the bank is called refinancing and is subject to the written approval of the consumer. The bank must provide information comparing the old and new conditions before approval (Housing Finance Contracts Regulation article 12). In case of interest reduction in the same bank, no fee other than early payment compensation can be charged (Communiqué article 10/4). When deciding to close the loan with a new loan from another bank, the compensation to be paid to the old bank and the sum of the new loan's allocation fee, appraisal and mortgage expenses should be compared with the savings to be obtained from the interest difference.
In 2021, K.Y. took out a housing loan of 1,500,000 TL with a fixed interest rate and a maturity of 84 months. He wanted to pay off his debt with a lower-interest loan offered by another bank in 2026; In addition to the remaining principal, the bank collected a two percent early payment compensation on the total payment amount on the closing day, as well as a fee called "credit closing fee". The remaining maturity of the loan is calculated as thirty months.
For fixed-rate housing loans with a remaining maturity not exceeding thirty-six months, compensation cannot exceed one percent of the early paid principal amount; Calculating the compensation based on the total amount including interest is also contrary to Article 11/4 of the Regulation. "Loan closing fee" is a fee that cannot be charged under any circumstances in accordance with Article 10/4 of the Communiqué. After the written application to the bank was inconclusive, an application was made to the consumer arbitration committee; It was decided to refund the overcollected compensation and closing costs.
Is it more advantageous to pay off the loan on the installment date or between two installments?
In case of closing between two installments, only the interest of the days from the last installment to the closing date is paid; The bank cannot ask for full month interest. Therefore, the choice of closing day does not significantly change the cost. What is decisive is the correct calculation of the remaining principal to be paid.
Will the guarantor be relieved of liability if I close early?
Yes. The guarantee ends when the principal debt is paid in full. However, it should be checked in the guarantee agreement whether the same guarantee has been given for another loan in the same bank.
Can an early closing fee be charged on a commercial loan?
Prohibitions in consumer legislation do not apply to commercial loans. Early payment terms are determined according to the contract and the Central Bank's regulations regarding the fees to be charged to commercial customers; A fee not foreseen in the contract cannot be requested.
Can the bank reject or postpone the early closing request?
No. Early payment is the legal right of the consumer. If the bank does not accept the payment or postpones the closing until the next installment date, this means changing the payment date to the detriment of the consumer and is contrary to Article 15/2 of the Regulation.
Confirming the amount verbally: An early closing statement should be requested in writing or with a permanent data recorder, and the remaining principal should be compared with the payment plan.
Not controlling the calculation basis of compensation: In a mortgage loan, compensation can only be calculated based on the principal paid early and limited to one percent or two percent depending on the remaining maturity.
Paying compensation for variable interest rate loans: Early payment compensation cannot be received at all for variable interest rate housing loans.
Not requesting a refund of insurance premiums: Credit-related insurance may not be canceled automatically; Premium refund must be requested separately.
Not following the mortgage cancellation: If the release letter is not received after the loan is closed, the mortgage continues to appear in the title deed and delays the sale or new loan transactions.
Early payment is a right granted to the consumer by law and cannot be restricted by contract. However, in practice, reflecting the next period's interest on the early closing statement, calculating the compensation on the total amount, or collecting additional fees under different names are common problems. Küheylan Law Firm offers holistic legal support to loan users, from auditing early closing and interim payment accounts through the contract and payment plan, to recovering overcollected compensation and fees through the consumer arbitration committee or consumer court, to evaluating the legal and financial consequences of refinancing decisions.
Important Legal Notice: The legal explanations, tables and case studies in this guide have been prepared by Küheylan Law Firm for general information purposes based on the legislation and judicial decisions in force as of 2026 and do not constitute legal advice. Since contract provisions, notification dates and periods directly determine the outcome in banking and finance disputes, it is recommended that each concrete case be evaluated separately by a lawyer. © 2026 Küheylan Law Firm. All rights reserved.
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