The Banking Regulation and Supervision Agency ("BRSA") of Turkey announced changes on the maximum term of instalments allowed on credit cards and consumer loans as of 15 August 2018.
CHANGE IN MAXIMUM TERM OF CREDIT CARD INSTALMENTS
TERM OF INSTALMENTS
|NEW MAX. TERM OF
(TVs, radios, other audio and visual systems etc.)
(Mobile phones, tablets, computers etc.)
|Jewellery||4||No instalments allowed.|
|Health and social services and medical products||9||9|
|Airline, transportation, travel agents, accommodation||9||6|
|Club and association membership payments||9||6|
|Telecommunication, direct marketing payments, payments in foreign countries, dining, food, alcohol, fuel, cosmetics, office supplies, gift card/cheque etc.||No instalments allowed.||No instalments allowed.|
|Payments with corporate credit cards||12||9|
CHANGE IN MAXIMUM TERM OF CONSUMER LOANS
|Vehicle (cars etc.)||48||48|
|Mobile phones, tablets, computers||48||6|
Refinancing of the consumer loans used after 15 August 2018 is subject to the maximum terms provided above for the relevant goods.
The debt balance of the consumer loans used before 15 August 2018 may be restructured with a 48-month maximum term upon the consumer's request until 15 August 2019. If an additional loan amount is utilized in the restructuring, its term must be limited to 36-months.
1. The maximum term for corporate credit cards has been reduced from 12 months to 9 months.
2. The maximum term does not apply for mortgages, house renovation loans, house leasing loans, real estate purchase loans, education loans, loans taken to pay public (state) debts and refinancing of the above. No change made in this exception.
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.