Pepper Savings Bank Lowers All Loan Interest Rates by 19.9% in Line with Legal Maximum Interest Rate Reduction

From the 7th of next month, over 20,000 customers to receive interest rate reduction benefits
Also applicable to borrowers before November 2018 who are not eligible

[Asia Economy Reporter Song Seung-seop] Pepper Savings Bank announced on the 10th that it will lower the maximum loan interest rate in accordance with the reduction of the legal maximum interest rate.

With this measure, the maximum interest rate for Pepper Savings Bank loan products will be lowered to 19.9%. It will also apply to high-interest loans issued before November 2018, which are not subject to the revised law. The actual implementation will take effect from the 7th of next month, when the legal maximum interest rate is lowered from the existing 24% to 20%.

The savings bank industry must lower the interest rates on loans issued after November 1, 2018, and future loans to below 20% in accordance with the maximum interest rate reduction. Under this regulation, interest rates will be reduced on loans totaling 346.1 billion KRW received by about 18,000 Pepper Savings Bank customers. Additionally, about 4,300 customers who took out high-interest loans before November 2018 will also benefit. The loan amount is approximately 37.5 billion KRW.

Eligible customers will receive separate notifications via text message in early July.

Matthew Jang, CEO of Pepper Savings Bank, emphasized, “As a financial institution for ordinary people, we decided to lower interest rates to reduce the burden on our customers,” and added, “We will continue to contribute to the financial stability of ordinary people and the local community.”

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