Turkey Cuts Credit Card Interest Rates: New Lower Limits Start August 1

The Central Bank of the Republic of Turkey (CBRT) has issued a new directive that will lower maximum interest rates on credit card transactions, directly impacting both individual and corporate cardholders. The updated rates, published in the Official Gazette, will take effect on August 1, 2025.

Breakdown of the New Interest Rate Structure

Under the new regulation:

• For individual credit cards with balances under 25,000 TL, the interest rate remains unchanged at 3.50%.

• For balances between 25,000 TL and 150,000 TL, the rate is reduced from 4.25% to 4.00%.

• For balances above 150,000 TL and all corporate credit cards, the rate drops from 4.75% to 4.50%.

• The cash advance and overdraft (KMH) interest rate is also lowered from 5.00% to 4.75%.

These reductions aim to ease borrowing costs and align with monetary policy adjustments.

Banks Notify Customers via SMS

Following the CBRT’s move, banks have started notifying customers by text message about the updated rates for overdraft and advance accounts. One sample message reads:

“Dear customer, as of 01.08.2025, the monthly contractual interest rate for your Advance Account (KMH) will be reduced to 4.75%, and the monthly overdue interest to 5.05%. This update constitutes a change to your contract.”

Such communications indicate that banks are actively adjusting interest rates in line with central bank guidance.

What This Means for Consumers

For borrowers, this move offers mild relief in the form of lower interest burdens—especially for those with high credit card debt. It also suggests that the CBRT is taking measured steps to support financial stability while continuing to navigate the broader fight against inflation.