[Practical Finance] '1mal2cho' Credit Loan Interest Rates: Consider Eligibility and Conditions Carefully

New Loan Products with 1% Rates for Specific Professions Emerging
Attention on New Products from K-Bank and Others Resuming Loans

[Asia Economy Reporter Kim Hyo-jin] The trend of credit loan interest rates in the banking sector can be summarized by the phrase 'late January, early February.' Amid the ultra-low interest rate environment, the annual lowest interest rates for typical credit loan products are generally formed in the low to mid-2% range, with some products occasionally appearing in the high 1% range. However, products with interest rates in the 1% range tend to have relatively strict restrictions on loan eligibility or conditions, making them less common as general products.

Recently, K-Bank, an internet-only bank that has resumed loan operations and is expanding its reach, has been attracting attention. K-Bank recently launched three household loan products: 'Credit Loan,' 'Overdraft Loan,' and 'Credit Loan Plus.' For the credit loan, if a preferential interest rate of 0.5 percentage points is applied, the annual lowest interest rate is 2.03% (as of the 28th). The overdraft loan offers an annual lowest interest rate of 2.33% when preferential rates are applied.

KakaoBank, which increased its personal credit loan balance to 14.1 trillion KRW as of the end of last month, is also continuously expanding its base. KakaoBank's credit loan limit is 150 million KRW, with a minimum interest rate of 2.17% per annum.

Among commercial banks, Hana Bank's mobile loan service 'Hana One Q Credit Loan' stands out. The entire process from loan application to execution can be completed in one stop via a mobile application (app). It is nicknamed the 'Cup Noodle Loan' because it takes less than three minutes to complete the loan. Hana One Q Credit Loan offers a minimum interest rate of 2.17% per annum and a maximum loan amount of 150 million KRW.

Credit loan products with interest rates in the 1% range can also be found from time to time. Woori Bank's credit loan product 'Woori Main Workplace Loan' offers a minimum annual interest rate of 1.60% with a maximum loan amount of 200 million KRW. The loan term can be extended up to five years with a contract period within one year. Shinhan Bank's 'Solpyeonhan Workplace Loan S' offers a minimum annual interest rate of 1.64% with a maximum loan amount of 200 million KRW. Conditions include being employed for more than one year at companies selected by Shinhan Bank and having an annual income of at least 25 million KRW.

NH Nonghyup Bank also offers credit loan products with a minimum annual interest rate of 1.80% targeting specific occupational groups. The 'NH Strong Workplace Loan' for employees of excellent companies allows loans up to 200 million KRW, and the 'NH Financial Leader Loan' for financial professionals allows up to 250 million KRW. The 'Super Pro Loan' for professionals has a limit of 250 million KRW, and the 'NH Medi Pro Loan' for medical professionals has a limit of 300 million KRW.

Although it is an ultra-low interest rate era, it is expected that it will take more time for credit loan products with general conditions and interest rates in the 1% range to become widespread.

A representative from a commercial bank explained, "It is clear that the overall downward trend in interest rates will continue in the future," but added, "Due to the need for risk management following the impact of the novel coronavirus infection (COVID-19), even if credit loan interest rates decrease slightly, overall loan limits may be reduced accordingly."

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