With the latest decision, installment terms for credit card purchases in Elazığ and Malatya have been doubled. According to the announcement from the Banking Regulation and Supervision Agency (BDDK), the installment period for credit card purchases made at merchant locations registered in Elazığ and Malatya will be applied at twice the usual length until January 1, 2021. The BDDK decision states that, whether loans are newly issued or restructured, banks will determine the installment schedules and number of installments — including the application of grace periods — independent of the limits set in the regulation.
Statement from the Banking Regulation and Supervision Agency
The Agency’s statement regarding the matter is as follows. Pursuant to Article 12/A, paragraph 6 of the Regulation on Banks’ Credit Transactions and Article 26, paragraph 7 of the Regulation on the Establishment and Operations of Financial Leasing, Factoring and Financing Companies:
- Until January 1, 2021, for persons residing in Elazığ and Malatya, banks may set the terms of newly provided or restructured loans granted in those regions — including the use of grace periods — without being bound by the time limits specified in paragraph 3 of Article 12/A, titled “Restrictions on housing, vehicle and consumer loans,” of the Regulation on Banks’ Credit Transactions.
- Also until January 1, 2021, for persons residing in Elazığ and Malatya, leasing, factoring and financing companies may determine the terms of newly provided or restructured loans granted in those regions — including the addition of grace periods — without being bound by the time limits specified in paragraph 2 of Article 11/A, titled “Restrictions on vehicle and consumer loans,” of the same Regulation governing those companies.
Furthermore, effective until January 1, 2021, the Agency has decided that installment terms for goods and services purchased by credit card at merchant locations registered in Elazığ and Malatya will be extended by one additional multiple. This extension is adopted under paragraph 7 of Article 26 of the Regulation on Bank Cards and Credit Cards and is based on the Board decision No. 8198 dated January 1, 2019, which previously set credit card installment period rules.