Toss Bank Launches Haetsalron Bank... Lowest Annual Rate 6.84%

Loans Available Up to 25 Million Won

Toss Bank announced on the 17th that it will be the first internet-only bank to launch the 'Haetsalron Bank,' a financial product for low-income individuals.

Haetsalron Bank is a product designed to support low-credit and low-income individuals who have used policy-based financial products for the underprivileged such as Saehope Hope Loan, Smile Microcredit, Haetsalron 15 and 17 for more than six months, helping them improve their debt or credit score and settle in the banking sector.

Loans are available from a minimum of 5 million KRW to a maximum of 25 million KRW within the guarantee limit of the Korea Inclusive Finance Agency (KIFA). The loan period is either 3 or 5 years, with a grace period of up to 1 year selectable. The repayment method is equal principal and interest installment repayment, and early repayment fees and stamp duties are waived. The guarantee fee is 2% per annum, but low-income youth (24 years old or younger with an annual income of 35 million KRW or less) can receive a 0.5% annual discount, and those who complete financial education and consulting can get a 0.1% annual discount.

Including the guarantee fee, the loan interest rate ranges from a minimum of 6.84% to a maximum of 13.24% per annum as of this date. The base interest rate can be chosen among 3-month financial bonds (3-month adjustment period), 6-month financial bonds (6-month adjustment period), or 12-month financial bonds (12-month adjustment period). The loan interest rate changes reflecting the base interest rate on the adjustment date of the variable period.

Applications can be made on the Toss Bank 'Find Products' page within the Toss application (app). However, since Haetsalron Bank is a product operated by KIFA, applications are not accepted on weekends and public holidays.

A Toss Bank official said, “Even those with low income and credit can easily apply for Haetsalron Bank through the Toss app,” adding, “This will be an opportunity for Toss Bank and KIFA to take a step further toward inclusive finance.”

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