Average interest rates on consumer loans also rose to the highest level in 5 years

SHAFAQNA TURKEY- According to calculations made on the basis of data from the Agency for Banking Regulation and Supervision (BDDK), consumer loans have doubled as of May 18, looking at a 13-week period and on an annualized basis.

According to the data, the amount of consumer loans increased by 4 billion 455 million liras as of May 18 to 1 trillion 357 billion 735 million liras. 427 billion 116 million lira of these loans consisted of housing loans, 78 billion 496 million lira for vehicles and 852 billion 123 million lira for consumer loans.

Increase in accounts receivable of banks on personal credit cards

During this period, the amount of commercial installment loans decreased by 5 billion 566 million liras to 1 trillion 102 billion 771 million liras. Individual receivables from banks on credit cards increased by 275 million liras and reached 670 billion 284 million liras. 360 billion 353 million lira of personal credit card receivables were in installments, and 309 billion 931 million liras were not in installments.

Interest rates on consumer loans at the peak of 5 years

According to BloombergHT, the dynamics of growth in consumer loans is maintained, despite the increase in interest rates.

According to the Central Bank of the Republic of Turkey (CBRT), average interest rates on consumer loans for the week since May 18 rose to 39.3 percent.

Thus, interest rates on consumer loans reached their highest level since October 2018.