Busan Bank Launches High-Interest Loan and Overdue Interest Reduction to Overcome Economic Crisis Together

Up to 1%p Interest Rate Reduction for Customers with Personal and Small Business Loans Exceeding 7% Annual Interest

[Asia Economy Reporter Yoo Je-hoon] BNK Busan Bank is implementing support measures to alleviate the interest burden on low-income individuals, small business owners, and vulnerable groups who are struggling due to the prolonged COVID-19 pandemic, interest rate hikes, and rising prices.

Busan Bank announced on the 13th that, as part of the 'Economic Crisis Overcome Together Project' conducted jointly with Busan City and the City Council, it will implement a high-interest loan interest reduction and overdue interest waiver program.

First, Busan Bank will reduce the interest rate by up to 1 percentage point (p) (applying a minimum annual rate of 7%) for customers using personal or small business loans with an interest rate exceeding 7% per annum. Eligible customers are individuals and small business owners whose total loan amount, excluding mortgage loans, is 500 million KRW or less as of the end of last month. These customers will be notified via SMS on the same day. Some cases, such as policy loans and new loan transactions within the last month, are excluded from this program.

The bank will also implement a full waiver of overdue interest to support the normalization of financial transactions. Eligible customers are small business owners operating businesses designated as COVID-19 affected industries and customers holding COVID-19 related loan products. Applications can be submitted at branch counters, and if the normal interest on overdue loans is paid, the overdue interest will be fully waived.

Detailed information about this reduction program can be obtained at all Busan Bank branches and customer centers. Busan Bank President Ahn Gam-chan stated, "This support measure was prepared to alleviate the interest burden on vulnerable groups and to guide a smooth transition to normal financial transactions," adding, "Busan Bank will continue to faithfully fulfill its role as a leading financial institution in the region."

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