From July, NH Nonghyup, Suhyup, and Shinhan Credit Unions Also Allow Exercise of Interest Rate Reduction Requests

Individuals can apply when employed or credit score improves
Corporations can apply when financial condition improves, etc.

[Asia Economy Reporter Shim Nayoung] Starting from July, individuals who have borrowed money from mutual finance cooperatives and central associations, including Nonghyup, Suhyup, Chukhyeop, and Shinhyup, will be able to exercise their right to request an interest rate reduction if their credit status improves. On the 10th, the Financial Services Commission announced that it has prepared amendments to the Enforcement Decree and supervisory regulations of the Credit Cooperatives Act reflecting this content.

Individuals can exercise the right to request an interest rate reduction when there is an improvement in their credit status, such as employment, promotion, increase in assets, or rise in personal credit score. Corporations and individual businesses are eligible when their financial condition improves or their credit rating or personal credit score increases.

Cooperatives and central associations must notify the acceptance status and reasons for the interest rate reduction request within 10 business days via phone, written document, text message, email, or other methods.

The criteria for judging whether to accept the interest rate reduction are twofold. It must be determined whether the borrower's credit status affected the interest rate calculation at the time of the loan contract, and whether the improvement in credit status is minor enough to affect the recalculation of the interest rate. The right to request submission of documents to verify the interest rate reduction request, conditions for recognizing the request, procedures, and so on will be provided on websites and other platforms.

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