5 Billion Won in Two Days... K-Bank Adam Loan Takes Off 'Wings'

12th: 2,000 Applicants, Completed in 30 Minutes

[Asia Economy Reporter Kim Hyo-jin] K Bank, an internet-only bank, has received high praise from consumers for its non-face-to-face apartment mortgage loan (Adamdae) launched after more than two years of development. The competitive interest rates and a system that can complete loan execution in as little as two days are analyzed as the reasons for the positive response.

According to the banking sector on the 13th, the application for Adamdae, which K Bank started accepting from 2 p.m. the previous day on a first-come, first-served basis limited to 2,000 people, was completed in just 30 minutes. K Bank accepted applications from 1,000 existing customers and 1,000 new customers who joined after the 28th of last month.

K Bank has accepted Adamdae applications four times in total, including this time, since August. The first round was limited to 1,000 people, and the 2nd to 4th rounds accepted applications limited to 2,000 people. The first to third rounds were conducted by receiving entries first and then drawing lots, attracting interest with up to about 30,000 applicants depending on the round.

K Bank’s Adamdae allows refinancing loans up to 500 million KRW if the customer already has an apartment mortgage loan. Customers who find it difficult to get unsecured loans can borrow up to 100 million KRW for living expenses. A K Bank official said, "It is understood that a considerable number of customers have borrowed the full limit of 500 million KRW."

K Bank’s Adamdae is reported to have recently surpassed a cumulative handling amount of 100 billion KRW. Considering that loan applications were accepted from customers selected by lottery since August 27, this is an achievement in about two and a half months.

K Bank cites interest rates and convenience as the strengths of Adamdae. A survey conducted on about 100 customers who executed Adamdae showed that the average interest rate of the housing mortgage loans (Judaemdae) they held just before switching to Adamdae at K Bank was 3.03% per annum, while the average interest rate of Adamdae executed last month was 2.24% per annum.

This means an average interest rate reduction effect of about 0.8 percentage points.

Additionally, among the survey respondents, 44% cited "non-face-to-face" and 38% cited "simplicity and convenience" as positive factors. A K Bank official said, "This can be interpreted as meaning that consumers’ demand for non-face-to-face mortgage loans was very high, as well as the competitiveness of interest rates."

K Bank’s Adamdae uses income information scraping technology to easily check the expected limit and interest rate without issuing separate documents. The documents required for loan execution have also been reduced to two: income verification documents (two years of withholding tax receipts or confirmation of withholding tax on earned income) and the registered title deed (registration certificate).

Documents can be authenticated by simply taking photos and entering the registration number without visiting a branch or sending a fax. The consent procedure for spouses and household members can also be completed via mobile.

With the introduction of the banking sector’s first electronic repayment power of attorney, all delegation procedures required for refinancing can be done via mobile. K Bank plans to expand the non-face-to-face mortgage loan area, including Jeonse and monthly rent loans, leveraging the response to Adamdae.

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