New Restructuring Regulations for Credit Cards and Personal Loans

Important Step from the Banking Regulation and Supervision Agency

The Banking Regulation and Supervision Agency (BDDK) has taken significant macroprudential decisions to ensure financial stability, introducing new regulations regarding the restructuring of Individual Credit Cards and Personal Loans. These decisions aim to protect financial consumers and ensure the sustainability of indebtedness.

Innovations in Housing Loans

According to the new regulations, there have been significant changes in the loan-to-value ratio practices for housing loans. The distinction between first-hand and second-hand housing has been abolished, and properties built after 2010 that have an energy efficiency rating of class C or higher will also be included in the advantageous loan value application. This change aims to support consumers, especially those acquiring their first home.

Restructuring Options for Individual Credit Cards and Personal Loans

Individual credit card debts and unpaid personal loans that are assessed as being overdue for more than 30 days can be restructured with a maximum term of 48 months. This opportunity will be implemented upon request by the debtor or cardholder.

New Regulations on Credit Card Limits

In line with the new regulations, significant criteria have been established regarding credit card limits. Banks will make adjustments to ensure that credit card limits are compatible with total income in the industry. In the first year, the limit set based on the cardholder's monthly average income can be increased to a maximum of twice, and after the second year, it can be raised to four times. This application aims to support credit usage, especially for low and middle-income customers.

Innovations in Overdraft Accounts

The limit determined for the opening of overdraft accounts (KMH) for individual customers is set at a maximum of twice the average monthly income proven by the banks. A different application will be implemented for educational payments, which will be exempt from these transactions.

These new regulations play a critical role in strengthening financial stability, preventing fraud, and protecting consumers.