Regulator warns about rising overdraft loans

Regulator warns about rising overdraft loans

ANKARA - Anatolia News Agency
Turkish customers who have an overdraft account at any Turkish lender should compare the interest rates and additional expenses on the loan, the Banking Regulation and Supervision Agency (BDDK) said March 30.

In a written statement, the BDDK said the total volume of loans through overdraft accounts had reached 7.39 billion Turkish Liras by the end of December last year, adding the total credit allowance granted by lenders to customers that was not used was nearly 22.4 billion liras last year. The volume of overdraft loans is rising, the regulator said, as “overdraft account loans are a common instrument that lenders offer to customers under the names ‘allowance account,’ ‘money plus,’ ‘extra account’ and many others. “ The BDDK said customers who had not filed an application for a loan actually pay interest due to automatic transactions from their overdraft accounts. “Customers should decide after considering the interest rates and additional expenses on the loan when utilizing such banking products,” said the BDDK in the statement.

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