JT Savings Bank, 0% Interest for 3 Months on 20% Annual High-Interest Household Credit Loans

[Asia Economy Reporter Song Seung-seop] JT Savings Bank announced on the 30th that the proportion of new household credit loan customers with an annual interest rate exceeding 20% has remained at 0% for three consecutive months.

Among household credit loan users, 65.7% are using loans with an interest rate of 16% or less, which is the standard for mid-interest rate loans. As of the end of last month, the average interest rate was 15.32%, which is 1.05 percentage points lower than the average (16.37%) of 36 savings banks handling household credit loans.

JT Savings Bank's maintenance of the high-interest customer ratio at 0% is largely attributed to the impact of the legal maximum interest rate reduction plan. In November last year, financial authorities announced a plan to lower the maximum interest rate to ease the high-interest burden on low-income earners. Starting from the second half of this year, the cap, which was 24% annually, is expected to be lowered to below 20%.

Choi Seong-wook, CEO of JT Savings Bank, emphasized, “To provide practical benefits to those struggling due to COVID-19, we will proactively offer new household credit loan products with an annual interest rate below 20% before the implementation of the legal maximum interest rate reduction.”

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