BNK Gyeongnam Bank Strengthens Support for Low-Income and Vulnerable Groups

Full Waiver of Overdue Interest for Vulnerable Borrowers with Less Than 3 Months Delinquency

Gyeongnam Bank Headquarters.

[Asia Economy Yeongnam Reporting Headquarters Reporter Song Jong-gu] BNK Gyeongnam Bank is implementing the ‘Vulnerable Group Support System’ to strengthen support for low-income and vulnerable groups.

The Vulnerable Group Support System operates through a high-interest borrower interest rate reduction program and a delinquent interest reduction program.

The high-interest borrower interest rate reduction program targets customers who, as of the 28th of last month, meet all of the following conditions: ▲household or corporate loans (individuals and sole proprietors, loan balance under 500 million KRW) with an interest rate exceeding 7% ▲no delinquency or accumulated days overdue ▲general loans (excluding overdraft loans) ▲excluding policy funds (such as Sunshine Loans, Safety Net Loans, etc.) ▲excluding customers with less than 30 days remaining loan period ▲excluding real estate rental business and entertainment bar business.

BNK Gyeongnam Bank uniformly reduces the interest rate by up to 1.0%p for all eligible customers under the high-interest borrower interest rate reduction program. (Minimum interest rate applied is 7.0%)

The support period is from November 7, 2022, to November 7, 2023.

However, for contracts with due dates before the support period, the interest rate reduction is applied until the contract due date.

The delinquent interest reduction program targets customers who meet all of the following conditions: ▲borrowers recognized as COVID-19 affected (businesses that received loss compensation or quarantine support funds from the Ministry of SMEs and Startups) ▲borrowers who are sole proprietors or small business owners under the Small and Medium Enterprise Basic Act ▲vulnerable borrowers who have experienced less than 3 months (90 days) delinquency in one or more loans based on the borrower.

BNK Gyeongnam Bank will fully waive delinquent interest for customers eligible for the delinquent interest reduction program upon application through a branch.

However, to receive the delinquent interest waiver, customers must pay the normal interest.

Jung Yoon-man, Executive Director of the Credit Sales Headquarters, said, “The Vulnerable Group Support System is a support program for customers facing difficulties due to economic conditions such as COVID-19, high interest rates, and high inflation. BNK Gyeongnam Bank will continuously support financially vulnerable groups and practice inclusive finance to fulfill its social responsibility as a representative regional bank.”

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