KakaoBank Lowers Mid-Credit Loan Interest Rates by 0.5 Percentage Points... Minimum Annual Rate 4%

KakaoBank announced that it will lower the interest rates on mid-credit loans by up to 0.50 percentage points starting from the 5th.

Mid-credit loans are designed for customers with mid to low credit ratings, targeting wage earners with an annual income of 20 million KRW or more, employment duration of at least one year, and a credit score of 860 or below (based on KCB). The maximum loan limit is 100 million KRW.

With this rate cut, the lowest interest rate has dropped from 4.576% per annum to 4.076% per annum. KakaoBank also reduced mid-credit loan rates earlier this year.

Since its launch in July 2017, the total amount of unsecured credit loans supplied to mid- and low-credit customers by KakaoBank reached 9.1248 trillion KRW through the first half of this year. Notably, 1.7503 trillion KRW was handled in the first half of this year alone, marking the highest amount ever recorded for a half-year period.

A KakaoBank representative explained, "We plan to actively expand loan supply to financially marginalized groups such as mid- and low-credit customers and those with insufficient financial history, continuing to practice inclusive finance."

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