Financial Supervisory Service to Increase Saehee-mang Holssi Loan Supply to 4 Trillion Won This Year

The Financial Supervisory Service (FSS) announced on the 10th that it will increase the supply target for the Saehee Hope Holssi Loan, a financial product for low-income earners, to 4 trillion won this year, up 400 billion won from the previous year.

According to the FSS, the supply amount of Saehee Hope Holssi Loans by banks last year was about 2.3 trillion won, and since the product was launched in 2010, approximately 2.36 million people have been supported with 31.3219 trillion won. The Saehee Hope Holssi Loan is available to individuals with an annual income of 45 million won or less who fall within the bottom 20% of personal credit scores (previously credit grade 6), and those with an annual income of 35 million won or less.

Looking at the supply amounts by bank, the top five banks?KB Kookmin Bank (473.7 billion won), NongHyup Bank (454.8 billion won), Hana Bank (365.9 billion won), Shinhan Bank (298.6 billion won), and Woori Bank (256.3 billion won)?account for 78.7% of the total.

The FSS stated that the average interest rate for the Saehee Hope Holssi Loan was 7.5%, a slight increase from 5.9% the previous year, but that the interest rate hike was minimized, narrowing the gap with household credit loans from 3.1 percentage points in 2018 to 1.2 percentage points last year. It added that the delinquency rate also remained stable, decreasing from 2.6% in 2018 to about 1.5% last year.

An FSS official said, "We plan to make efforts to provide smooth financial support to low-income earners through the development of various Saehee Hope Holssi products, expansion of non-face-to-face channels, and interest rate reductions."

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