April Mortgage Loan Average Interest Rate Rises to 2.58%... "Impact of Reduced BoGeumJaRi Loan Handling"

Impact of Reduced Handling of Bogumjari Loan

[Asia Economy Reporter Jang Sehee] Mortgage loan interest rates slightly increased as the handling of the BoGeumJaRi Loan was reduced. This is because the proportion of policy interest rate products decreased.

According to the weighted average interest rates of financial institutions announced by the Bank of Korea on the 27th for April 2020, the bank mortgage loan interest rate (based on new loans) last month rose by 0.10 percentage points from the previous month to 2.58% per annum. Due to the increase in mortgage loan rates, household loan interest rates also rose by 0.01 percentage points from the previous month to 2.89%.

The rise in mortgage loan interest rates was due to an increase in long-term interest rates and a decrease in the proportion of relatively low-interest policy financial products.

A Bank of Korea official analyzed, "The increase in long-term mortgage loan interest rates was significant," and added, "Since mortgage loan interest rates account for a large portion of household loan interest rates, the household loan interest rates also showed an increasing trend."

Last month, the bank corporate loan interest rate decreased by 0.17 percentage points from the previous month to 2.77%. Large corporate loans fell by 0.07 percentage points to 2.65%, and small and medium-sized enterprise loans dropped by 0.27 percentage points to 2.86%. The interest rate on savings deposits decreased by 0.07% from the previous month to 1.20%.

Meanwhile, the statistics based on new loan amounts refer to the weighted average interest rates applied to new deposits and loans handled by banks during the month, weighted by the amount of new loans.

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