Deadline nears for Türkiye’s loan and credit card debt restructuring scheme

Millions of borrowers in Türkiye are approaching a key deadline to restructure their bank debts, as applications for a government-backed repayment program close on April 29.

The scheme, introduced by the Banking Regulation and Supervision Agency (BDDK) on Jan. 29, allows individuals struggling with credit card and consumer loan debt to spread payments over up to 48 months.

Authorities gave borrowers a three-month window to apply. With less than a month remaining, those who want to benefit must apply directly through their banks before the deadline.

Who qualifies for debt restructuring

The program targets individuals who have fallen behind on payments or cannot fully meet their debt obligations.

Eligible cases include:

• Credit card debts that were partially or fully unpaid by their due date as of Jan. 29
• Consumer loans taken before Jan. 29 that were overdue by over 30 days
• Overdraft accounts linked to bank credit lines

Once approved, banks restructure the full outstanding balance and create a new repayment plan based on the borrower’s financial situation.

Applications are not automatic. Borrowers must contact their bank and request restructuring.

Repayment terms, interest rate cap, key rules

Under the regulation, debts can be restructured with maturities of up to 48 months.

The Central Bank has capped the monthly interest rate at 3.11%, preventing banks from exceeding the official reference rate.

Several operational rules apply:

• Monthly installments are added to the minimum payment due on credit cards
• Credit card limits cannot be increased until 50% of the restructured debt is repaid
• If the restructured amount exceeds the card limit, it is not treated as a limit violation

Banks calculate repayment plans based on the selected maturity and the borrower’s repayment capacity.

Importantly, once the first installment is paid, the borrower’s credit risk record is cleared under the scheme.

Shorter repayment plans reduce total cost

While longer maturities lower monthly payments, they significantly increase total interest costs.

Financial calculations show a clear difference:

• A debt of ₺100,000 (around $2,250) over 12 months leads to a total interest equal to about 28.18% of the principal
• The same debt over 48 months can push total interest costs up to around 128% of the principal

This means borrowers who can afford shorter repayment periods will pay substantially less overall.

What borrowers should do before April 29

With the deadline approaching, financial experts warn that waiting could mean losing access to structured repayment options.

For those considering the program:

• applications must be submitted directly to the bank where the debt is held
• borrowers should compare repayment plans before choosing a maturity
• selecting a longer term reduces monthly pressure but increases total repayment

The restructuring program aims to ease pressure on household budgets during ongoing economic volatility, but access depends on meeting the April 29 deadline.

April 02, 2026 03:26 PM GMT+03:00