Turkey Cuts Credit Card Interest Rates: Relief for High-Debt and Corporate Users

The Central Bank of the Republic of Turkey (CBRT) has announced a significant interest rate cut on credit card transactions, aiming to ease financial pressure on millions of consumers. Effective August 1, the new regulation lowers maximum interest rates by 25 basis points across several key categories.

The policy change was detailed in an official update to the Communiqué on Maximum Interest Rates Applicable to Credit Card Transactions, published in the Official Gazette. While the interest rate for balances below ₺25,000 remains at 3.5%, higher balances and corporate credit card rates have been trimmed.

New Interest Rates Effective August 1

The updated rate structure is as follows:

• Cash Advance & Overdraft (KMH):
  Reduced from 5.00% to 4.75%

• Personal Credit Cards with Balances Between ₺25,000–₺150,000:
  Lowered from 4.25% to 4.00%

• Personal Balances Over ₺150,000 & Corporate Cards:
  Cut from 4.75% to 4.50%

Who Benefits?

The rate reduction targets individuals with high outstanding balances and business card users, offering direct monthly savings and lower borrowing costs. For consumers utilizing cash advances or operating within the overdraft system, the move provides a notable reduction in finance charges.

Broader Policy Context

This marks the latest move in the CBRT’s broader monetary easing cycle, following the recent 300 bps policy rate cut. The credit card rate adjustment reflects the Bank’s intent to stimulate domestic demand while reducing household debt stress, especially as borrowing costs across sectors remain elevated.