19.09.2025 13:20
The Central Bank has reduced the interest rates on overdraft accounts (KMH) by 25 basis points. According to the announcement published in the Official Gazette, as of October 1, 2025, the KMH interest rate will be lowered from 4.75% to 4.50%.
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The Central Bank of the Republic of Turkey (CBRT) has reduced the interest rates on overdraft accounts (KMH) and cash withdrawal from credit cards by 25 basis points. According to the communiqué published in the Official Gazette, as of October 1, 2025, the KMH interest rate will be lowered from 4.75% to 4.50%.
A consumer with an overdraft account (KMH) limit of 10,000 lira will pay 475 TL in interest per month at the old interest rate of 4.75%, while the monthly interest will decrease to 450 TL with the new rate. With this change, the monthly payable interest will decrease by 25 TL.
WHAT IS AN OVERDRAFT ACCOUNT?
An overdraft account is a type of credit that works in conjunction with your demand deposit account and provides you with additional cash in situations where your balance is insufficient. KMH can be used to meet short-term cash needs.
RISKS OF USING KMH
Since KMH interest rates are close to cash advance interest rates on credit cards, failing to repay the debt on time can lead to a heavy interest burden.
In the long term, the accumulation of debt can negatively affect the consumer's credit score, and the available credit limit may be reduced by banks.
EXAMPLE CALCULATION
*Old interest rate: 4.75%
*Monthly interest: 10,000 × 4.75% = 475 TL
*New interest rate: 4.50%
*Monthly interest: 10,000 × 4.50% = 450 TL
*Difference: 475 – 450 = 25 TL
*The monthly payable interest has decreased by 25 TL.
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