Turkey's banking regulator has extended the maximum credit card instalment period from nine months to twelve months for purchasing goods and services, as well as cash withdrawals. The maximum maturity period for consumer loans has also increased from 36 months to 48 months.
The Turkish Banking Regulation and Supervision Agency extended the maximum credit card instalment period from nine months to twelve months for purchasing goods and services, as well as cash withdrawals. However, shorter limits apply for certain purchases:
- Four months for jewellery.
- Six months for electronic appliances and computers.
- Nine months for:
- Flights.
- Travel agency purchases.
- Transportation.
- Accommodation.
- Health and social services.
- Medical products.
- Payments to clubs and associations.
- Tax payments.
Credit card payments for the following are now prohibited from being paid via instalments:
- Telecommunication and direct marketing expenses.
- Expenses from outside Turkey.
- Products which does not include concrete purchases, such as meals, food, alcoholic beverages, fuel, cosmetics, office equipment, gift card, gift cheques etc.
The Banking Regulation and Supervision Agency extended the maximum maturity period for consumer loans from 36 months to 48 months. However, the limitation does not apply to the following loans:
- Loans for mortgages and renovation.
- Leasing of residences to customers through financial lease.
- Loans used to purchase immovables.
- Education loans.
Please see below links for the full text of the amending regulations. (only available in Turkish)
- Regulation Amending the Regulation on Bank Cards and Credit Cards
- Regulation Amending the Regulation Regarding Credit Transactions of Banks
- Regulation Amending the Regulation on Establishment and Activity Principles of Leasing, Factoring and Financing Companies
Information first published in the MA | Gazette, a fortnightly legal update newsletter produced by Moroğlu Arseven.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.