Important Update: Changes to the Limit of Interest-Free Credit Borrowing
With the Central Bank’s interest rate cuts, all credit types have started to pick up speed, even if it is modest. However, current interest rates continue to remain high, increasing the borrowing costs for citizens.
Zero-interest credit for up to 6 months is now available! Despite the low amounts, citizens are now being offered zero-interest loan opportunities. As of March, the limits for zero-interest loans have been updated, with banks offering zero-interest loans of up to 60 thousand TL for 6 months.
But why are the limits for zero-interest credit increasing in banks? Are these limits expected to increase in the future? And does the appetite for lending in banks increase with interest rate cuts?
According to Sworn Financial Advisor Ahmet Kurtuluş, banks may organize such campaigns from time to time in order to attract new customers, expand their customer portfolios, and increase their credit volumes.
However, it is important for borrowers to pay attention to the conditions of these zero-interest loans. Some banks may attract customers with zero interest rates, but may still charge high amounts under the guise of insurance and file costs.
At present, customers may not necessarily benefit from these campaigns, as they are often used as marketing tactics. It is advised to carefully examine the conditions before taking out a loan.
As we approach the end of the first quarter, banks may decrease such campaigns, with estimates that they will reduce in April. Close monitoring of March, June, September, and December is recommended for such campaigns.
While it is still too early to confirm, there are signs that the lending appetite in banks is slowly increasing. With the goals outlined in the Medium-term Plan being met in economic management, the fight against inflation remains uncertain.
If March inflation figures meet expectations, it is anticipated that the Central Bank will further reduce interest rates, leading to banks lowering their loan interest rates accordingly. March inflation will play a crucial role in achieving the targets for 2025 and lowering interest rates.
