The Saving Finance Model (Tasarruf Finans)

The (Turkish) Savings Finance sector, which specializes in real estate/vehicle financing through the savings-based financing method, is an innovative sector evaluated under the umbrella of alternative finance that develops financial products for segments that conventional finance cannot reach due to reasons such as high risk/costs and interest sensitivity. The model, which was first launched in 1991 for car financing, is built on the principle of Islamic Finance. In 2021, the sector was placed under the supervision of the Banking Regulation and Supervision Agency (BRSA) with a legal regulation, and various innovative financing methods were developed to respond to diversifying financing needs. The functioning of the system is explained with the help of quantitative algorithms that determine payment plans and allocation dates that consider corporate/individual benefits. All the financing options, which are named as Free-Plan, Rent-Assisted, Sequential, Inflation-Protected, and House Price Indexed, focus on the relationship between the payments made and the determination of the allocation date.