Shinhan Bank Also Raises Loan Threshold...Agent Quota Limited to 500 Billion Won

[Asia Economy Reporter Kwangho Lee] Shinhan Bank has limited the loan cap for jeonse loans through loan agents to 500 billion KRW. This is interpreted as a measure due to the increased likelihood of worsening loan conditions caused by the balloon effect from banks' suspension and reduction of loans.

A Shinhan Bank official stated on the 8th, "From the perspective of household loan management, we have set the loan agent jeonse loan cap at 500 billion KRW," adding, "Even if the agent loan cap is exhausted, jeonse loans can still be obtained at branch offices."

Loan agents refer to corporations and loan consultants who have signed loan solicitation consignment contracts with banks and connect banks with borrowers. The suspension of loans through agents is perceived as a preliminary step before the overall suspension of bank loans.

As of the end of last month, the household loan balance of the five major banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?stood at 702.8878 trillion KRW, an increase of 4.88% compared to the end of last year (670.1539 trillion KRW), approaching the government's recommended annual loan growth rate of 5-6%.

By bank, Shinhan Bank has the most loan capacity with a 3.02% increase. NH Nonghyup Bank, which has suspended new loans, recorded the highest increase at 7.29%, followed by Hana Bank (5.19%), KB Kookmin Bank (4.90%), and Woori Bank (4.05%).

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