BNK Busan Bank Reduces Interest Rates and Late Fees on High-Interest Loans for Vulnerable Groups

Bank-Busan City-City Council Agreement, 'Economic Crisis Overcoming Partnership Project'

Up to 1%p Reduction for Low-Income and Small Business Owners with Over 7% High-Interest Loans

Full Waiver of Overdue Interest for Small Business Owners

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] BNK Busan Bank is implementing support measures to alleviate the interest burden on ordinary citizens, small business owners, and vulnerable groups who are struggling due to the prolonged COVID-19 pandemic, interest rate hikes, and rising prices.

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

First, for customers using personal loans and small business loans with an interest rate exceeding 7% per annum, the bank will reduce the interest rate by up to 1 percentage point (applying a minimum annual rate of 7%).

The eligible customers are individuals and small business owners whose total loan amount, excluding mortgage loans, is 500 million KRW or less as of August 31.

Eligible customers will be notified via SMS on the 13th. Some cases, such as policy-based products and new loan transactions within the last month, are excluded from the application.

The bank will also implement a full waiver of overdue interest to support the normalization of financial transactions. The target group includes small business owners operating businesses designated as COVID-19 affected industries and customers holding COVID-19 related loan products.

Applications can be submitted through branch counters, and if the normal interest on overdue loans is paid, the overdue interest will be fully waived.

Detailed information about this waiver program can be confirmed at all Busan Bank branches and customer centers.

Busan Bank President An Gam-chan said, “This support measure was prepared to alleviate the interest burden on vulnerable groups and to guide a smooth landing into normal financial transactions,” adding, “We will fulfill our role more faithfully as a financial institution representing the region.”

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