Bad news for credit card debtors: Changes coming on November 1st...

The Central Bank of the Republic of Turkey (TCMB) Monetary Policy Committee (PPK) has raised the policy rate by 5 points to 35 percent, in line with expectations. With the interest rate hike, the upper limits for credit card and commercial loan interest rates will change.

WHAT WILL HAPPEN TO CREDIT CARD INTEREST RATES?

The reference interest rate, which determines credit card interest rates, will rise to 3.16 percent following the rate hike. The maximum monthly contractual interest rate for credit cards will increase from 3.26 percent to 3.71 percent, and the monthly late payment interest rate will rise from 3.56 percent to 4.01 percent. The interest rate for cash advances will increase from 4.02 percent to 4.47 percent per month.

UPPER LIMIT FOR COMMERCIAL LOANS TO INCREASE

The upper limit for commercial loan interest rates will rise from 69.3 percent to 83 percent based on the 1.8 coefficient. The upper limit for export and investment loans will increase from 53.9 percent to 64.5 percent annually.

WHEN WILL IT TAKE EFFECT?

The new interest rates for credit cards and commercial loans will come into effect starting November 1st. Current rates will remain valid for transactions made until November 1st.

News Source: 12punto