[Ki Ha-young's Life Card] From July, Maximum Interest Rate Reduced from 24% to 20%, Check Your Card Loan Interest Rate

Shinhan, Samsung, Hyundai Card down to 19.9%
KB Kookmin, Hana reduced to 19.95%

Is there anyone these days without at least one credit card? In modern society, it has become a world where anyone can have a card if they want. Credit cards have brought unparalleled convenience to daily life. Now, wherever you go, you can easily see people paying with credit cards or smartphones. As demand has increased, cards with various benefits are being released almost daily. Accordingly, Asia Economy delivers various stories related to cards, which are inseparable from our consumer life, through the weekly 'Cards in Daily Life' corner, from introducing new cards to industry behind-the-scenes and guides for card beginners.

[Image source=Reuters Yonhap News]

The legal maximum interest rate will be lowered from 24% to 20% per annum starting next month on the 7th. Accordingly, credit card companies have also started adjusting their interest rates. If you plan to use cash services or card loans, it will be helpful to check the lowered interest rates and make a repayment plan. Also, even if you are already using related financial products, since card companies have agreed to apply the maximum interest rate retroactively, it is necessary to check the retroactive portion due to the interest rate reduction.

Samsung Card has lowered the maximum interest rate from 23.9% to 19.9% for short-term card loans (cash services), long-term card loans (card loans), revolving payment agreements, Samsung Card credit loans, and installments. Since the 7th, customers newly using these products have been applied an interest rate of 19.9% or less. For customers who were already using products with interest or fee rates above 20%, the interest rate was also lowered to 19.9% starting from the 10th.

Other card companies also plan to lower interest rates in line with the legal maximum interest rate reduction next month. Shinhan Card will reduce the maximum interest rate for individual members’ cash services, card loans, and revolving payments from 23.9% to 19.9% starting from the 1st of next month. Cash service rates will be revised from the current 6.1?23.9% per annum to 6.1?19.9%, revolving payments from 5.4?23.9% to 5.4?19.9%, and installments from 9.5?20.9% to 9.5?19.9%.

KB Kookmin Card will also lower the maximum interest rates for cash services, revolving payments, and installment fees from the current 23.9% to 19.95% starting from the 3rd of next month. The current cash service fee rate of 5.9?23.9% per annum will change to 5.9?19.95%. Revolving payments will be adjusted from 5.6?23.6% to 5.6?19.95%, and installments from 8.6?21.4% to 8.6?19.95%.

Hyundai Card will also lower card loan interest rates from the current 5.5?23.5% to 4.5?19.5% starting from the 1st of next month. Cash service rates will be reduced from 6.5?21.9% to 5.5?19.9%, and revolving payments from 5.5?23.9% to 4.5?19.9%. Hana Card also plans to lower the maximum interest rates for cash services and revolving payments to 19.95%.

The reduction of the legal maximum interest rate is a policy promoted by financial authorities to ease the loan interest burden on low-income people who have been hit by the ongoing low-interest rate trend and COVID-19. Since this applies not only to card companies but also to the entire financial sector including savings banks, it is up to us to check this and make repayment plans that help our household economy.

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