JT Chin-Ae Savings Bank, "All Loan Interest Rates Below 20%" Ahead of Maximum Interest Rate Reduction

[Asia Economy Reporter Song Seung-seop] JT Chin-ae Savings Bank announced on the 17th that it will lower all loan interest rates to below 20% per annum starting from the 1st of next month.

According to the "Amendment to the Enforcement Decree of the Interest Limitation Act and the Loan Business Act," the legal maximum interest rate will be reduced from 24% to 20% per annum starting July 7. All savings banks must set the interest rates of loans contracted, renewed, or extended after November 1, 2018, as well as new loans, below 20% per annum.

JT Chin-ae Savings Bank will also apply the reduction retroactively to loans issued before November 2018, lowering the interest rates to below 20%. The total number of such loans is 5,024, amounting to 32.3 billion KRW. Including loans issued after November 2018 (2,886 loans, 16.3 billion KRW), approximately 7,508 borrowers (7,910 loans, 48.6 billion KRW) will benefit.

Customers whose loan interest rates are reduced will be notified of the reduction via text messages and other means in early July.

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