The CBRT included consumer loans in its security facility application.

In accordance with the growth of the Central Bank loan (CBRT), the scope of the application of the security line has been expanded, and with other commercial loans. This includes consumer loans as well.

According to the letter sent yesterday by the CBRT to the banks and seen by Reuters, if the growth rates are above 3 percent compared to the previous calculation date, separately on the basis of the related loan types, together with new additions, security equal to the loan amount in excess of this rate will be locked in for one year.

The CBRT decided that cash withdrawals and jewelry spending made through individual credit cards above a certain limit should be subject to a security facility at a rate of 30 percent, depending on the type of loan.

IT WILL ALSO BE VALID FOR CASH ADVANCE AND GOLD

This change will be valid for jewelry spending and cash withdrawals starting May 16, 2023.

Since the cost of credit card cash advances or installment cash advances provided the lowest loan in TL at 1.36 percent monthly interest, it became the loan channel with the highest individual demand before the elections.

Banks stated that they began to reduce the disbursement of loans within the scope of this facility, which allows borrowing at a very low interest rate of almost 20 percent, before the CBRT took this step.

While some banks have lowered the maximum amount of cash advances that can be used prior to this article, many banks have lowered the longest maturity from 12 months to 6 months.

The CBRT also changed the calculation methods of conversion accounts opened against physical gold. (Reuters)