K Bank Reaches 100 Billion KRW in Jeonse Loans in Just Over Two Months... 81% Are from the 2030 Generation

[Asia Economy Reporter Kiho Sung] K Bank announced on the 17th that the loan amount for its Jeonse loan and Youth Jeonse loan products, launched in August, has reached 100 billion KRW in just over two months.

K Bank's Jeonse loan is characterized by a 100% non-face-to-face process, enhancing customer convenience. By simply entering basic information such as the Jeonse contract in the K Bank application (app), customers can check loan eligibility, estimated interest rates, and limits in a one-stop manner. The document submission process has also been greatly reduced; applicants only need to take photos of two documents?the lease contract (with a confirmed date) and the deposit receipt (with at least 5% of the deposit paid)?and submit them through the app.

The low annual interest rate in the 2% range is also a popular factor. According to the Korea Housing Finance Corporation, the average interest rate for Jeonse loans executed by the five major commercial banks last month was 3.12% per annum. By the same standard, K Bank's rate was lower at 2.43% per annum. As of this date, the Jeonse loan has a minimum annual interest rate of 2.43%, and the Youth Jeonse loan has a minimum annual interest rate of 2.12%.

Due to these non-face-to-face services and low interest rates, there have been 100,000 preliminary inquiries to date. Particularly, there has been a strong response from the 2030 generation. Among the executed Jeonse loans and Youth Jeonse loans, 81% were taken by the 2030 generation. The 20s accounted for 39%, and the 30s for 42%, showing similar proportions, which is interpreted as helping the housing stability of young adults and actual demanders in their 20s and 30s.

K Bank's Jeonse loan is a product guaranteed by the Korea Housing Finance Corporation, with a maximum loan limit of 222 million KRW for Jeonse loans and up to 100 million KRW for Youth Jeonse loans. For youths aged 34 or younger, both Jeonse loan and Youth Jeonse loan products can be compared at a glance on one screen.

A K Bank official stated, "We will continue to focus on supplying loans for actual demanders such as the young generation in their 20s and 30s and middle-to-low credit borrowers through differentiated and customer-friendly products."

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