A new type of financial institution is popping up on main streets all over Turkey, offering a unique alternative to traditional banking.
- These Savings Finance Companies (TFS) promise homes and cars without the need for standard loans.
- They operate on Islamic finance principles, specifically avoiding traditional interest payments.
- Instead, customers join a collective fund where members pool monthly contributions together.
- Through lotteries or turns, members receive the capital they need to make major purchases.
By sharing the risk among a group of savers, these firms have become a popular way for people to reach their financial goals without relying on interest-based credit.