New regulation on credit card interest rates: Effective from November 1st

The Central Bank of the Republic of Turkey (TCMB) and the Banking Regulation and Supervision Agency (BDDK) have implemented significant regulations regarding credit card interest rates.

The new rates, which will come into effect as of November 1, 2024, have begun to be notified to customers by banks.

According to the new regulation, interest rates to be applied will vary depending on the amount of the credit card statement balance.

According to messages sent to customers, the contractual interest rate for debts under 25,000 TL has been set at 0.39%, while for debts between 25,000 TL and 150,000 TL, this rate will be 1.14%.

For debts exceeding 150,000 TL, a contractual interest rate of 1.64% will be applied.

In addition, the default interest will be calculated by adding 0.30% to the contractual interest rate. The current reference rate has been set at 3.11%, and interest rates will be updated whenever this rate changes.

As of October 2, 2024, changes are also being made to the minimum payment rates.

Those with credit card limits of 50,000 TL and below will pay 20% of their statement balance as the minimum payment, while this rate has been set at 40% for those with limits above 50,000 TL.

This step aims to encourage users to pay off their debts faster.

The BRSA is offering a restructuring option of up to 60 months for individuals experiencing payment difficulties.

Those unable to pay their credit card debts will be able to restructure their debts for up to 60 months with installments added to the minimum payment amount.

However, credit card limits will not be increased until half of the debt is paid.

For consumer loans, there is also an option for installment plans of up to 60 months in cases of delays exceeding 30 days.

These regulations will closely affect the financial situations of credit card users.