Big Credit Card Shift: Turkey Set to Loosen Cash Advance Rules in 2026

Turkey’s economic administration is preparing to relax key restrictions on credit card cash advance transactions, marking one of the most significant regulatory shifts since the tightening measures introduced in early 2024. Beginning January 1, limits imposed by banking authorities will start to loosen, paving the way for broader changes expected to take shape in 2026.

Earlier in 2024, the Banking Regulation and Supervision Agency (BDDK) issued informal directives to banks that sharply tightened cash advance conditions. These measures reduced the maximum installment period for credit card cash advances from 12 months to just 3 months, and restricted total cash withdrawals to 25% of a cardholder’s overall credit limit.

In addition, the BDDK set a 25,000 TL ceiling for cash advance withdrawals, a cap introduced to curb demand-driven inflation.

New Limits on the Table as Card Usage Declines

Despite significant depreciation in the Turkish lira over the past year, these restrictive limits remained unchanged. As a result, cash advance usage dropped noticeably, with consumers increasingly avoiding card-based cash transactions.

Recognizing that current thresholds no longer align with economic realities, policymakers are preparing to introduce a phased relaxation of existing rules.

Installment Terms to Double — Then Return to 12 Months

Beginning in the new year, the three-month maximum installment limit for cash advances is expected to increase to six months. According to sector sources, regulators plan to eventually reinstate 12-month installment options, restoring the structure that was in place before the 2024 tightening cycle.

This gradual return to more extended installment periods is viewed as part of a broader effort to normalize consumer credit dynamics and relieve pressure on household cash flow.

Cash Withdrawal Ceiling Set for Major Adjustment

The current 25,000 TL cap on credit card cash withdrawals will also be re-evaluated. Authorities and industry insiders say the limit has become insufficient under today’s economic conditions.

Sector expectations point to a new ceiling of 50,000 TL, effectively doubling the current allowance and giving consumers greater flexibility in emergency or high-need situations.

For credit cards with lower overall limits, the existing rule restricting withdrawals to 25% of the card limit may also be revised upward, allowing a higher portion of the card limit to be used as cash when necessary.

A Return to Flexibility After Two Years of Tight Controls

The potential adjustments reflect a shift toward loosening credit discipline after nearly two years of stringent measures aimed at cooling demand. Analysts note that while the earlier restrictions successfully curbed inflationary pressure in the short term, they also reduced consumer access to liquidity at a time when purchasing power was already under strain.

With 2026 approaching, the economic administration appears ready to balance financial stability with greater consumer flexibility—a move that could reshape credit card usage patterns nationwide.