Woori Bank Introduces Asset Evaluation Index... "Practicing Inclusive Finance for Vulnerable Groups"

[Asia Economy Reporter Kim Hyo-jin] Woori Bank announced on the 13th that it has introduced an 'Asset Evaluation Index' that can assess the borrower's actual repayment ability in the screening of personal credit loans.

The Asset Evaluation Index grades the appraisal amount of housing among the assets owned by an individual by scale, provided by KCB (Korea Credit Bureau). Woori Bank uses the Asset Evaluation Index as a supplementary indicator when evaluating the loan repayment ability of customers with low reported income.

With the introduction of the Asset Evaluation Index, sole proprietors or retirees who had difficulties in obtaining loans due to difficulty in proving past income or low reported income can now relatively easily receive credit loans. In particular, self-employed individuals who have suffered damage from the novel coronavirus infection (COVID-19) recently can receive appropriate financial support if they own housing.

Woori Bank also announced that it will extend the operation of the 'Repayment Burden Relief System' for low-credit and faithful interest payers, which was first implemented by a domestic bank in April last year, for one more year. The Repayment Burden Relief System is a system where, when financially vulnerable groups such as low-credit borrowers extend or renegotiate existing loans and the loan interest rate exceeds 6%, the excess amount is used to repay the loan principal.

A Woori Bank official said, "We hope that the Asset Evaluation Index and the Repayment Burden Relief System can help resolve the financial difficulties of vulnerable groups struggling due to COVID-19."

This content was produced with the assistance of AI translation services.