Türkiye revises phone loan and credit card rules

ISTANBUL

Türkiye’s banking regulator has revised loan terms for mobile phone purchases and doubled the credit limit threshold used to determine minimum credit card payments.

Consumer loans for phones costing up to 40,000 Turkish Liras can run for a maximum of 12 months, while loans for more expensive devices are limited to three months, the Banking Regulation and Supervision Agency (BDDK) announced on Oct. 2.

For refurbished phones purchased from refurbishment centers or authorized sellers, the price ceiling for 12-month loans is 50,000 liras. Loans for devices above that price are capped at three months.

Credit card installments remain prohibited for phones other than refurbished models. Refurbished phones can be purchased in up to 12 monthly installments, regardless of price.

The regulator also raised the card limit threshold used to calculate minimum payments from 50,000 to 100,000 liras.

For cards with limits of up to 100,000 liras, the minimum payment is set at 20 percent of the monthly statement balance. The rate is 40 percent for cards with higher limits.