The Banking Regulation and Supervision Agency (BDDK) issued a new regulation covering developments that affect all retirees. Through this arrangement, people who struggle to pay credit cards or debts and those who cannot meet basic living expenses — particularly retirees — are offered loans through PTT with repayment terms up to 60 months.
Loan Opportunities for Retirees
With prolonged effects of the pandemic and worsening economic conditions, many people, especially retirees, are facing financial hardship and seeking credit. The BDDK has issued new guidance to PTT and banks to support retirees and other individuals who have no steady income but hold credit cards and struggle to pay even the minimum amounts.
Under this guidance, retirees and others without sufficient income who have difficulty meeting obligations such as credit card debt will be able to access debt consolidation or consumer loans with repayment terms up to 60 months. Borrowers who use these programs will benefit from relatively low interest rates.
Up to 60-Month Loans for Retirees
In response to rising foreign exchange and gold prices that have eroded pension purchasing power, the BDDK adopted measures to help retirees with cash needs. Circulars sent to PTT directorates announce low-interest loans for retirees with terms up to 60 months. The notices also emphasize that loan requests from eligible retirees should be satisfied and necessary facilitation provided.
Retirees who cannot obtain consumer loans with terms over three years from banks may access loans through PTT for up to five years at lower interest rates, according to their pension amounts. Applicants seeking loans from PTT must meet certain conditions:
- Applicants must be retirees. The pension must be received via PTT or transferred to be paid through PTT.
- The maximum age limit to apply is 82 years.
- The repayment plan is structured so monthly deductions do not exceed half of the retiree’s pension. For example, a retiree with a 1,500 TL pension could have a maximum monthly repayment of 750 TL.
- The maximum loan amount is set at 80,000 TL.
- Interest rates vary based on PTT’s current rates and prevailing market conditions.
- The applicant must apply in person. Applications submitted on behalf of another retiree are not accepted, even with a power of attorney.
- Retirees can apply at PTT branches or submit a preliminary application by SMS. To request pre-evaluation, send a message containing “PTT” and the national ID number to 3050; the application will be prechecked and eligibility for the loan will be communicated by SMS.
Loan Options for People Without Income
The BDDK’s new measures extend beyond retirees to include people without any formal income. Under the new rules, the credit card limits for those without income — previously 1,300 TL — have been increased to 2,000 TL. This allows income-less individuals to use their credit cards to withdraw up to 2,000 TL from ATMs or branches.
The regulation also changes how missed credit card minimum payments are treated. If a cardholder fails to pay the minimum amount three times within a year, immediate legal proceedings will not begin; instead, the person will be granted until the end of the year to resolve the debt. During this period, the individual’s credit score will be reduced and obtaining new credit cards from other banks will be restricted. If the debt remains unpaid by year-end, legal follow-up procedures will commence.