Turkey consumer debt exceeds 6.8 trillion TL as BDDK introduces new regulations

Turkey is experiencing a significant surge in household debt, with consumer loans and credit card balances exceeding 6.8 trillion TL as of July 31. The number of individual borrowers has reached 44.3 million, with an average debt of 155,000 TL per person. Due to rising living costs, many citizens are using credit to manage existing debts rather than for new purchases. This trend has led to a rise in non-performing loans, with the transition rate for consumer loans hitting 6.1%, the highest in nine years.

In response to economic conditions, the Banking Regulation and Supervision Agency (BDDK) has introduced new regulations for savings finance companies. Effective October 1, 2026, these rules aim to mitigate risk by limiting the investment areas for savings funds to low-risk, liquid assets such as participation accounts at participation banks or specific Turkish Lira-denominated sukuk.

The regulations also introduce contract limits to prevent risk concentration. Individuals will be restricted to a maximum of two active contracts: one for vehicle financing and one for housing or workplace financing. Contract value limits have also been updated, with the housing financing threshold rising to 12.5 million TL and the vehicle financing threshold set at 6.25 million TL.