"KakaoBank Launches Non-Face-to-Face Mortgage Loan with 'Chatbot Consultation' on the 22nd"

[Asia Economy Reporter Buaeri] KakaoBank will launch a mortgage loan on the 22nd. Unlike traditional banks where loan applications were processed at branches, the entire process from application to inquiry and execution will be conducted through conversations with a chatbot.

Yoon Ho-young, CEO of KakaoBank, explained at an online press conference on the 15th, "The convenient experience of unsecured loans that we confirmed at KakaoBank's launch can now be experienced with mortgage loans as well."

KakaoBank's mortgage loan targets apartments located in the metropolitan area with a KB market price of 900 million KRW or less. It covers new home purchase funds, refinancing of existing mortgage loans, living stabilization, and jeonse deposit refund loans. The maximum loan amount available is 630 million KRW.

The repayment period can be chosen from 5, 15, 25, or 35 years. If 5 years is selected, a variable interest rate applies, with loan rates ranging from 2.989% to 3.535% per annum. For 15, 25, or 35 years, a mixed interest rate of 3.595% to 3.930% per annum applies. After the fixed interest period ends, rates of 2.876% to 3.527% per annum are applied. As of the 10th, these rates are up to 1.7 percentage points lower than the variable rates (3.580% to 5.230%) of KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup banks.

Repayment methods include equal principal installment repayment and equal principal and interest installment repayment. Early repayment fees are fully waived until the end of this year.

When a customer applies for a mortgage loan, a chat window with KakaoBank's chatbot opens, and after entering information, the loan limit is checked, and document submission, loan screening, and loan execution are all conducted within the chat window. Baek Hee-jung, team leader of KakaoBank's Mortgage Loan Service Cell, said, "We adopted a conversational interface to replicate the psychological reassurance that comes from face-to-face interactions at branches on the mobile app screen."

When applying for a loan, the chatbot calculates the loan limit and interest rate by reflecting conditions such as Loan-to-Value ratio (LTV), Debt-to-Income ratio (DTI), and Debt Service Ratio (DSR). Customers can also check changes in loan limits and interest rates by entering different income levels.

The burden of submitting loan documents has been minimized. Real estate sales contracts can be submitted by simply taking a photo. Other necessary documents for the loan are directly verified by KakaoBank through related institutions with the customer's consent.

For home purchase loans requiring ownership transfer registration, a notary affiliated with KakaoBank visits the customer on the payment date. Information about the notary is also provided through the chatbot. For refinancing loans of existing home purchase funds, jeonse deposit refund loans, and living stabilization loans that do not require ownership transfer, the loan process is completed non-face-to-face through electronic registration.

Song Ho-geun, team leader of the Mortgage Loan Studio, said, "Since KakaoBank launched the jeonse deposit loan in 2018, non-face-to-face and mobile processes have rapidly advanced, and now mortgage loans will also become the mainstream mobile non-face-to-face loans within 4 to 5 years." He added, "KakaoBank will gradually expand the eligible regions and properties for mortgage loans."

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