Cash advance interest rate on credit cards increased

The Central Bank of the Republic of Turkey (TCMB), as part of additional tightening measures, has raised the interest rate on cash withdrawals from credit cards and overdraft accounts to a level consistent with personal loan interest rates, while also taking new steps to increase the share of Turkish lira (TL) deposits in the banking system.

The Communiqué on the Amendment to the Communiqué on Maximum Interest Rates to be Applied in Credit Card Transactions by the TCMB has been published in the Official Gazette.

The TCMB has changed the calculation method for the monthly maximum contractual interest rate to be applied to cash advance transactions from credit cards and overdraft accounts. According to the new method, the calculated monthly maximum contractual interest rate has been increased from 4.42 percent to 5 percent.

Following the recent increases in personal loan interest rates, the interest rate applied to cash advances had remained lower than the personal loan interest rate. With this change, the discrepancy has been eliminated, and the rates in question will be effective as of today.

News Source: 12punto