NongHyup Bank Set to Resume Mortgage Loans for Non-Homeowners... "To Protect Real Demand"

[Asia Economy Reporter Kiho Sung] NH Nonghyup Bank is expected to soon resume mortgage loans exclusively for non-homeowners. This comes four months after suspending a significant portion of loans since August, with the policy aimed at ensuring uninterrupted loan support for non-homeowners as mortgage loans for this group are considered loans for actual demand.

According to the financial sector on the 21st, Nonghyup Bank is reportedly positively reviewing the resumption of new mortgage loan issuance for non-homeowners.

To manage the total volume of household loans, Nonghyup Bank halted new real estate-related loans such as non-face-to-face apartment mortgage loans and group approval loans (apartment group loans) starting in August. Credit loans were also limited to a maximum of 20 million KRW regardless of the borrower.

However, since the total volume management policy will be maintained until the end of the year, a full resumption is expected to be difficult. The suspension of non-mortgage loans or refinancing loans (loan switching) is likely to remain in place. Prior to this, Nonghyup Bank began issuing new jeonse loans starting from the 18th of last month. This follows the financial authorities' policy to exclude jeonse loans issued in the fourth quarter of this year from the total volume management limit.

As of the end of September, Nonghyup Bank's household loan balance increased by 7.3% compared to the end of last year. This is the highest growth rate among banks, significantly exceeding the 5-6% range set by financial authorities.

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