"K Bank Lowers Interest Rates on Adam Loans and Jeonse Loans While Increasing Limits"

Adamdae Fixed Interest Rate Reduced by up to 0.18%p, Jeonse Loan Reduced by up to 0.28%p

[Asia Economy Reporter Sim Nayoung] K-Bank has lowered the interest rates on apartment mortgage loans (Adamdae) and jeonse loans while increasing the loan limits to reduce customers' housing cost burdens. K-Bank announced on the 4th that it has lowered the interest rates on Adamdae and expanded the loan limits.

First, K-Bank lowered the interest rates on the fixed-rate mixed interest (fixed interest) product of Adamdae by 0.17% to 0.18% points (p) annually depending on the customer, effective from this day. As a result, the fixed interest rate for Adamdae dropped to 3.8% to 4.29% annually as of today.

K-Bank also doubled the loan limit for Adamdae living stabilization fund loans from 100 million KRW to 200 million KRW starting this month. This is a measure in line with the current government's 'loan regulation normalization plan.' K-Bank customers can now borrow up to 200 million KRW using their existing apartment as collateral at Adamdae interest rates, which are lower than unsecured loan rates.

K-Bank's Adamdae has gained popularity by offering competitive interest rates and simple procedures.

K-Bank has led the reduction of housing cost burdens during the interest rate hike period by lowering Adamdae interest rates five times in total: in February (fixed rate), March (variable rate), June (variable and fixed rates), July (variable and fixed rates), and August this year. Due to continuous enhancement of interest rate competitiveness, the average interest rate on K-Bank Adamdae loans based on outstanding balances stood at around 2.9% annually as of the end of the first half of this year.

Simple procedures are also a strength. K-Bank Adamdae is the industry's first to allow 100% non-face-to-face processing from application to loan disbursement. The loan limits are up to 1 billion KRW for refinancing and up to 200 million KRW for living stabilization funds. The period from loan application to approval has been reduced to a minimum of two days, and all customers can enjoy preferential interest rate benefits without any conditions.

Launched in August 2020, K-Bank Adamdae surpassed a cumulative balance of 1 trillion KRW in February this year, leveraging these advantages.

K-Bank's Adamdae has been particularly effective in reducing housing costs for real demanders in their 30s and 40s. As of the end of the first half of this year, 74.9% of all K-Bank Adamdae customers were single-homeowners, and 19.8% were two-homeowners, accounting for 94.7% of the total. By age group, those in their 40s made up the largest portion at 48.3%, followed by those in their 30s at 35.4%, with the 30s and 40s combined accounting for 84.1% of the total.

Since the 3rd, K-Bank has also lowered the interest rates on general jeonse loans by 0.26% to 0.28% points annually. This is the third rate cut this year following two reductions in June and July. Accordingly, the interest rates for general jeonse loans applied on the 4th range from 3.57% to 4.67% annually.

A K-Bank official said, "To reduce housing cost burdens, we have lowered the interest rates on Adamdae and jeonse loans and increased the loan limit for Adamdae living stabilization funds in accordance with government policies."

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