Interest Rate Cuts on Small Ruminant Livestock Loans Reach 100%

September 27, 2026 · Tarım Pusulası

Interest rate reduction rates on livestock loans offered by Ziraat Bank and Ziraat Katılım are reaching up to 100% with additional criteria, providing producers with zero-interest financing.

Osman Türkman, Chairman of the Gaziantep Province Sheep and Goat Breeders Association, shared important details regarding livestock loans provided through Ziraat Bank and Ziraat Katılım. According to Türkman's statements, the financing opportunities offered to producers are grouped under two different categories: Basic Livestock Production Loan and Small Ruminant Livestock Production Loan. The upper limit for the Basic Livestock Production Loan is applied as 10 million TL, while this limit goes up to 50 million TL for the Small Ruminant Livestock Production Loan. Producers need to choose the most suitable option based on their farm size.

Osman Türkman stated that 100% interest-free financing is available for loan amounts up to 300,000 TL, and that various criteria increase the interest rate reduction percentages. Planned production and contract farming models, as well as being a woman or young farmer, provide significant advantages to the producer. Furthermore, conditions such as producing one's own feed, purchasing rams and bucks from improvement projects, bringing idle facilities into production, purchasing animals born domestically, investing in solar energy, and operating in organized agricultural zones increase the interest rate reduction. Members of first-degree agricultural organizations can also benefit from these reductions.

Türkman emphasized that loans are divided into two types, investment and operational, depending on their purpose, and that maturities vary accordingly. For long-term projects such as purchasing breeding animals or constructing barns, investment loans offer maturity options of 4, 5, and 7 years. In contrast, operational loans are utilized for meeting seasonal needs such as purchasing male animals, acquiring machinery and equipment, and obtaining medicines and vaccines. Producers can benefit from a maximum maturity of 18 months for these operational expenses.

Touching upon the interest difference between loan types, Türkman stated that 50% of the normal interest rate of 40.5% for the Basic Livestock Production Loan is covered by the state. For the Small Ruminant Livestock Production Loan, an initial interest reduction of 75% is applied. The choice of loan category depends directly on the livestock holding; the basic loan is used for purchasing 100 sheep or 50 goats, while the Small Ruminant Livestock Production Loan is activated for purchases of 250 or more sheep or 100 or more goats. Businesses that increase their existing herds to these numbers can also benefit from the highly discounted group.

Sharing a concrete cost table based on 100 sheep under Gaziantep conditions, Türkman stated that a total investment of 1.5 million TL is required, with an estimated cost of 15,000 TL per animal. For this scale, the basic interest reduction is 50%, with an additional 20% from planned production and 15% from the criteria of being a woman or a young farmer under 41 years old. Thus, the total interest reduction reaches 85%. With the remaining 15% interest burden, the total repayment for a 1.5 million TL loan used with a 5-year term is 2,625,000 TL, and the annual installment amount is 525,000 TL.

Reminding that the base reduction for the Small Ruminant Livestock Production Loan is 75% when purchasing 250 sheep, Türkman noted that with additional criteria, the rate can exceed 100%, making the interest completely zero. He emphasized that the final loan approval depends on the bank's credit score, guarantor, mortgage, and collateral assessment. Türkman advised breeders to first consult with the bank and obtain approval before purchasing animals. Once the purchase is completed, the bank transfers the payment directly to the seller's account, and the farm can begin production.

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