Hanssem and Hana Bank Launch Remodeling Installment Repayment Financial Service

'Hana Interior Loan' Service Launched
Up to 30 Million KRW, Interest Rates Starting at 2%, Up to 60 Months Installment Repayment

Hanssem will implement the remodeling installment repayment financial service 'Hana Interior Loan' in collaboration with Hana Bank.
[Photo by Hanssem]

[Asia Economy Reporter Kim Jong-hwa] Comprehensive home interior specialist company Hanssem Co., Ltd. announced on the 5th that it will implement the 'Hana Interior Loan' service, which allows customers to purchase home remodeling products through financial loans from Hana Bank, a first-tier financial institution.

By enabling remodeling projects costing tens of millions of won to be purchased through low-interest bank loans, customers can now undertake entire home remodeling as well as kitchen and bathroom renovations with less financial burden.

The 'Hana Interior Loan' financial service applies to Hanssem Rehouse's 'Style Package' products as well as kitchen and bathroom products such as 'Kitchenbah' and 'Euro'.

High-cost remodeling burden reduced with installment repayment service

Typically, remodeling costs range from around 20 million won to over 50 million won, but most consumers pay these costs in cash or through high-interest credit card installments. With the availability of financial loan services through first-tier financial institutions, the burden of remodeling costs is expected to be significantly reduced amid the heavy financial load of raising large sums and high fees.

For example, assuming remodeling a 30-pyeong (approximately 99 square meters) apartment with Hanssem Rehouse Style Package at about 1 million won per pyeong, the total construction cost would be around 30 million won. If the entire construction cost is financed through the Hana Interior Loan, applying the lowest interest rate of 2.6% for a loan amount of 30 million won over a maximum of 60 months, the monthly payment would be approximately 530,000 won, enabling full home remodeling at an affordable monthly cost.

Also, remodeling the kitchen and two bathrooms in a typical 30-pyeong apartment with Hanssem's 'Milan' grade may cost about 10 million won. If the full amount is financed through the Hana Interior Loan with the lowest interest rate of 3.1% for a 10 million won loan over 60 months, the monthly payment would be about 180,000 won, making kitchen and bathroom remodeling affordable on a monthly basis.

Non-face-to-face loan available, installment repayment from minimum 12 months up to maximum 60 months

The Hana Interior Loan service is conducted through non-face-to-face online (mobile) loans. Eligible applicants include salaried workers with more than two years of employment or self-employed individuals with more than two years of business operation, who own an apartment in their name (including ownership plans and joint ownership). Customers can check their loan limit and submit contract documents non-face-to-face through Hana Bank to receive the loan.

Loans are available according to the amount specified in the remodeling contract for Hanssem remodeling products, with a maximum loan amount of up to 30 million won within the guarantee limit calculated by Seoul Guarantee Insurance based on the customer's credit score. The repayment method is 'equal principal and interest installment repayment' without a grace period, with installment repayment possible from a minimum of 12 months up to a maximum of 60 months.

Loan interest rates can be as low as the mid-2% range depending on preferential conditions. However, interest rates vary depending on loan amount, loan period, and changes in the base interest rate. Additionally, the loan is available separately from individual credit loan limits, with limits determined by Seoul Guarantee Insurance's own screening and the application of the 'DSR regulation (Debt Service Ratio)'. The loan is fully secured by Seoul Guarantee Insurance collateral.

An Heung-guk, President of Hanssem Rehouse Business Division, said, "While installment financing is common for car purchases, remodeling, which can require even larger amounts, has had limited financial benefits. Now, remodeling projects can significantly reduce initial capital burdens through financial services from first-tier financial institutions."

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