KakaoBank Lowers Mid-Credit Loan Interest Rate by 0.75%P... Supply Scale Nears 10 Trillion Won

KakaoBank announced on the 31st that it will lower the interest rate of its credit loan product for middle to low credit customers (KCB score of 860 or below), called 'Jungsinyong Loan,' by 0.75 percentage points.

As a result, the lowest interest rate for KakaoBank's Jungsinyong Loan has dropped to 4.05% per annum (as of the 31st). The Jungsinyong Loan product is a loan offered to wage earners with an annual income of 20 million KRW or more, at least one year of employment, and who meet the credit evaluation criteria for Jungsinyong Loans. The maximum loan limit is 100 million KRW.

Since its launch in July 2017, KakaoBank has supplied a cumulative total of 9.5655 trillion KRW in credit loans to middle and low credit customers as of September this year. In just the first nine months of this year, it supplied 2.4549 trillion KRW. Having supplied more than 250 billion KRW in middle and low credit loans monthly on average this year, the cumulative supply amount is expected to exceed 10 trillion KRW by November.

The proportion of credit loans to middle and low credit customers at KakaoBank increased nearly threefold from 10.2% at the end of December 2020 to 28.4% at the end of August 2023. KakaoBank plans to actively provide loans to financially marginalized groups, including middle and low credit customers and those with limited financial history, during the remaining period of this year. It will continue efforts to achieve the target of 30% loan proportion expansion set in 2021.

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