New era in loans and credit card debt! Minimum payment amounts changed

According to new decisions made by the Central Bank of the Republic of Turkey (CBRT) and the Banking Regulation and Supervision Agency (BRSA), individuals who are unable to pay their personal credit card and consumer loan debts will now have the opportunity to restructure these debts for up to 60 months. Additionally, changes have been made to the minimum payment rate for credit cards, depending on the card’s limit.

Restructuring up to 60 Months

The BRSA has introduced a restructuring option of up to 60 months for those who cannot pay their personal credit card and consumer loan debts. Individuals unable to make the minimum payment on their credit card balance will be able to restructure their existing credit card debt for up to 60 months. The installment amount for each month will be added to the minimum payment amount for that month. Until at least half of the restructured credit card debt is paid off, the credit limit at the relevant bank cannot be increased.

CBRT has also capped the maximum interest rate for restructuring personal credit card debts at 3.11%, the reference interest rate.

Consumer loans can also be restructured for up to 60 months without any additional credit, provided that the principal and interest payments are overdue by more than 30 days. Borrowers must apply for restructuring within one year.

Changes in Minimum Payment Rates

The BRSA has also made changes to the minimum payment rate for credit cards. The minimum payment rate, previously set at 20% of the outstanding balance, now applies to credit cards with a limit of up to 50,000 Turkish Lira, up from 25,000 TL. For credit cards with a limit exceeding 50,000 TL, the minimum payment rate will be 40% of the outstanding balance.

In line with the BRSA’s steps, CBRT has differentiated the maximum contractual interest rates for personal credit cards based on the outstanding balance, tied to the reference rate. The specific rates will be announced on October 24 and will take effect on November 1.

If the reference rate remains unchanged, the maximum contractual interest rates will be:

– 3.50% for credit cards with an outstanding balance of less than 25,000 TL

– 4.25% for credit cards with an outstanding balance between 25,000 and 150,000 TL

– 4.75% for credit cards with an outstanding balance exceeding 150,000 TL

The maximum contractual interest rate for cash withdrawals via credit cards remains at 5%.