Suspension of Services and Limit Reductions Continue... Loan Barriers to Rise Further by Year-End

Bank Loan Counter Reference Image (Source=Yonhap News)

[Asia Economy Reporter Kim Hyo-jin] As financial authorities tighten 'loan restrictions,' it is expected to become even more difficult to borrow money from banks until the end of the year.

According to the financial sector on the 13th, KB Kookmin Bank will effectively suspend household credit loans exceeding 100 million won from the 14th until the end of the year. If the newly applied or increased credit loan combined with the existing credit loan exceeds 100 million won, the loan approval will be denied.

KB Kookmin Bank has already suspended the recruitment of mortgage loans and jeonse loans through loan consultants until the end of the year, and Woori Bank has also stopped selling its representative non-face-to-face credit loan product, 'Woori WON Workplace Loan.'

Shinhan Bank will lower the credit loan limit for professionals such as doctors and lawyers to 200 million won from the 14th and plans to soon prepare and announce measures to curb credit loans for general office workers. Hana Bank is also known to be planning to implement measures such as reducing loan limits soon.

In the case of the internet-only bank KakaoBank, in line with the strengthened regulations on high-income earners at the end of last month, the loan interest rates for high-credit borrowers on workplace credit loans and overdraft loans were raised by 0.10 percentage points and 0.25 percentage points, respectively.

The household loan balance of the five major commercial banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?at the end of last month increased by 9.4195 trillion won compared to the previous month. The increase was about 1.75 trillion won more than the previous month's 7.6611 trillion won.

In particular, credit loans surged by 4.8495 trillion won compared to the previous month due to a rush of 'last-minute demand' following the strengthened regulations on high-income earners implemented at the end of last month. Mortgage loans also increased by 4.1354 trillion won.

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