Banks stopped withdrawing cash advances

Following the Central Bank’s cash advance regulations (CBRT), banks closed their credit cards to cash advances.

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

After the decision, it was seen that banks stopped making cash advance payments to credit cards. Customers who wanted to withdraw cash advances from ATMs encountered an error on the screen.

EXPLODED DEMAND

Last week, some banks began to significantly reduce the amount and maturity that can be used on “credit card cash advances,” which has become the cheapest and most common TL lending channel for individuals due to restrictions applied to other loans.

It has recently become the borrowing channel with the highest individual demand, since the cost of credit card cash advances or installment cash advances provides the lowest borrowing in TL with a monthly interest of 1.36 percent . In contrast to the cash advance, which can be borrowed monthly at 1.36 percent interest, monthly interest rates for individual loans at some banks exceed 4 percent.