Credit card cash advance and installment limits reduced

Bankers had stated that credit cards in the sector were growing at three times the rate of total loans, and that they expected restrictive regulations on credit cards to manage inflation.

Three banking sources speaking to Reuters stated that the maximum number of installments has been reduced from 12 to three. One source also stated that limits have been imposed on corporate credit cards.

CREDIT CARDS GREW BY OVER 150 PERCENT

According to data from the Banking Regulation and Supervision Agency (BDDK), when looking at the 12-month change, while total loans grew by over 50 percent, credit cards grew by over 150 percent.

BEFORE THE GENERAL ELECTION

Before the general elections in May last year, some banks had also reduced the amounts and maturities available for credit card cash advances—which had become the cheapest and most common TL borrowing channel for individuals at that time with an interest rate of 1.36 percent—due to restrictions applied to other loans; the number of installments had returned to 12 as interest rates began to rise.

Currently, the interest rates applied by banks for credit card cash advances are at the 4.42 percent level.

News Source: 12punto