Household Loans Increase by 3.6825 Trillion Won in One Month... Largest Growth Since May

Last Month, Household Loans at 5 Major Banks Totaled 685.782 Trillion KRW
Mortgage Loan Rates Increased but Growth Continued
Credit Loans Also Turned to Growth for the First Time This Year

The outstanding household loans at the five major commercial banks increased by nearly 3.6 trillion won in just one month. This was due to a significant rise in mortgage loans despite the upward trend in loan interest rates.

According to the financial sector on the 2nd, the outstanding household loans at the five major domestic commercial banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?stood at 686.0119 trillion won as of the end of last month. This is an increase of 3.6825 trillion won from 682.3294 trillion won the previous month.

The increase in household loans last month was the largest since May. The monthly increases were 143.1 billion won in May, 633.2 billion won in June, 975.4 billion won in July, 1.5912 trillion won in August, and 1.5174 trillion won in September.

The rise in household loans is attributed to the increase in mortgage loans. The outstanding mortgage loans at these banks reached 521.2264 trillion won at the end of last month, up 4.1406 trillion won from 517.0858 trillion won the previous month. Although financial authorities are tightening mortgage loans to curb household debt growth and banks are raising mortgage interest rates, the upward trend has not been halted. Currently, the upper limit of variable mortgage loan interest rates at the five major banks has surpassed 7%, and the upper limit of fixed rates is also approaching 7%.

Household credit loans also turned to an increase for the first time this year. The outstanding credit loans at the five major banks stood at 107.9424 trillion won at the end of October, up 60.15 billion won from 107.3409 trillion won the previous month. However, this figure has been declining since last year and continues to do so this year. It has steadily decreased from 115.6247 trillion won in January to 109.9314 trillion won in April and shrank further to 108.4171 trillion won in August.

Jeonse deposit loans saw a slight decrease. The outstanding jeonse deposit loans at these banks were 121.7043 trillion won at the end of last month, down 47.13 billion won from 122.1756 trillion won the previous month.

On the 23rd, as domestic market interest rates and bank loan interest rates rapidly rise, a banner displaying loan interest rates is hung on the exterior wall of a commercial bank in Seoul. Photo by Jinhyung Kang aymsdream@

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