KakaoBank Surpasses 6 Trillion KRW in Credit Loans for Low to Medium Credit Customers

[Asia Economy Reporter Buaeri] KakaoBank announced on the 26th that the total amount of loans supplied to low- and medium-credit borrowers since its launch in 2017 has surpassed 6 trillion KRW.

According to KakaoBank, the amount of unsecured credit loans provided to low- and medium-credit customers in the lower 50% credit score range based on KCB standards totaled 6.0402 trillion KRW.

As of the end of July, the balance of unsecured low- and medium-credit loans stood at 2.9862 trillion KRW, and the proportion of low- and medium-credit loan balances increased by more than 3 percentage points from 19.9% at the end of Q1 to 23%.

According to KakaoBank, among customers using low- and medium-credit loan products, those whose credit scores improved (as of Q2) saw an average increase of 58 points.

Among customers who applied for the right to request an interest rate reduction and lowered their rates on the 'Medium Credit Plus Loan' product, the largest rate cut was 8.16 percentage points, saving 1.22 million KRW annually in interest expenses.

On the 5th, KakaoBank lowered the minimum interest rate of its medium-credit loan products by up to 0.5 percentage points. The maximum limit for KakaoBank's medium-credit loan products is 100 million KRW, with interest rates ranging from 4.696% to 9.8% per annum.

A KakaoBank official stated, "In the third quarter of this year, to strengthen differentiation for low- and medium-credit customers, we will introduce a credit evaluation model utilizing various alternative information such as Kakao affiliate data, book purchase information, and automatic transfer information."

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