Toss Bank Launching Tomorrow... Interest in Credit Loan Conditions

[Asia Economy Reporter Kiho Sung] Toss Bank, the third internet-only bank, will officially launch tomorrow and begin selling loan and deposit products. Of particular interest, the minimum interest rate for its credit loan products is expected to be set at the lowest in the market at around 2.7%, with a maximum limit of approximately 270 million KRW. However, Toss Bank is also expected to introduce the common credit loan limit restriction of 'within annual income' applied across the banking sector.

According to banking sources on the 4th, Toss Bank plans to sequentially open banking services such as loan and deposit product sales and check card issuance starting from the 5th for pre-registered customers.

Previously, Toss Bank introduced a demand deposit account that pays a fixed annual interest rate of 2% without any restrictions on the deposit amount. As a result, as of the 2nd, the number of customers who pre-registered for banking services surpassed 1 million. The Toss Bank check card also offers up to 46,500 KRW cashback monthly without any prior spending conditions and provides an immediate 3% cashback on overseas usage.

The credit loan products to be unveiled at launch are also expected to be competitively priced in terms of interest rates and limits compared to other banks. Toss Bank will offer two types of loan products: general credit loans and overdraft accounts, without separate mid-interest rate loan products, and is also known to launch the policy finance product 'Saitdol Loan.' According to the Toss Bank website, as of the 3rd, the general credit loan interest rates range from 2.76% to 15.00% per annum, with limits from a minimum of 1 million KRW to a maximum of 270 million KRW. Although the interest rates and limits will vary depending on the borrower's individual conditions, it is likely they will be set within this range.

However, Toss Bank is also expected to adopt the financial authorities' household loan regulations partially, setting the credit loan product limit at 270 million KRW but restricting it within the 'annual income range.' Although it is freer than existing banks regarding the total annual household loan growth rate regulation, it cannot avoid considering the financial authorities' policy prioritizing household debt suppression.

Meanwhile, Toss Bank has submitted a plan to the financial authorities to make the proportion of mid-interest rate loans within total credit loans 34.9% by the end of the year. Additionally, it is developing mortgage loans, jeonse (key money deposit) loans, and small business exclusive loan products, which will be introduced considering the financial market conditions after the start of operations.

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