Communiqué on Maximum Interest Rates Applicable to Credit Card Transactions published

It has been decided that the maximum interest rates applicable to credit card transactions will be determined with a predictable, rule-based method that reflects current market conditions.

In determining the maximum interest rates applicable to credit card transactions, as an indicator of funding cost, the reference rate calculated under the Communiqué on Procedures and Principles Regarding Fees That May Be Charged by Banks to Commercial Customers (No: 2020/4), taking into account the weighted average deposit interest rates of banks, will be used as the basis. The monthly maximum contractual interest rate to be applied in Turkish lira will be determined by adding 55 basis points to this reference rate.

In this context, the method for calculating the maximum interest rates applicable to credit card transactions is as follows:

Accordingly, effective 1 November 2020, the monthly maximum contractual interest rate applicable to credit card transactions in Turkish lira has been calculated as 1.46 percent and the monthly maximum late payment interest rate as 1.76 percent; the monthly maximum contractual interest rate applicable to credit card transactions in foreign currency has been calculated as 1.17 percent and the monthly maximum late payment interest rate as 1.47 percent.

The rates calculated according to this method will be announced on the official CBRT website under Statistics / Banking Data / Maximum Interest Rates Applicable to Credit Card Transactions on the fifth business day from the end of each month, and will be valid from the first day of the following month.

Details of the relevant communiqué can be found at the link below:

https://www.resmigazete.gov.tr/eskiler/2020/10/20201031-10.htm