Shinhan Bank Lowers Household Loan Additional Interest Rate by up to 0.3%p

Shinhan Bank announced on the 13th that it will reduce the additional interest rates on household loans, including mortgage and jeonse deposit loans, by up to 0.3 percentage points starting from the 14th.

First, for mortgage loans, the additional interest rate will be reduced by 0.1 percentage points for home purchase funds and by 0.05 percentage points for living stabilization funds, but only for financial bond 5-year products. For jeonse deposit loans, the additional interest rate will be reduced by 0.2 percentage points for loans from the Korea Housing Finance Corporation and by 0.3 percentage points for loans guaranteed by Seoul Guarantee Insurance.

However, restrictions to prevent real estate speculation and overheating will remain in place. Restrictions such as the loan term limit (30 years) for mortgage loans and purchase fund limits for multiple homeowners will be maintained, and for jeonse loans, the conditional restriction on the transfer of ownership by the lessor will also remain.

Some restrictions will be eased from the 14th for actual demand borrowers. For mortgage loans, the limit on living stabilization funds due to the economic downturn will be lifted, and for jeonse loans, conditions such as the disposal of self-owned housing on the day of handling will be allowed.

Meanwhile, Shinhan Bank has also differentiated the prepayment penalty rates following changes to the model guidelines for calculating prepayment penalties.

For movable and real estate secured loans, the fixed rate is 0.61% for household loans and 0.40% for corporate loans, while the variable rate is 0.60% for household loans and 0.40% for corporate loans. For other (guarantee) secured loans, the fixed rate is 0.76% for household loans and 0.14% for corporate loans, and the variable rate is 0.72% for household loans and 0.14% for corporate loans.

For unsecured loans, the fixed rate is 0.03% for household loans and 0.05% for corporate loans, while the variable rate is 0.03% for household loans and 0.04% for corporate loans.

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