KakaoBank Lowers Saehuimangholssi and Sunshine Loan Rates to Ease Burden on Vulnerable Borrowers

Saehuimangholssi rate cut by 0.30%p
Sunshine Loan rate cut by 0.75%p
Banking Act amendments reflected in advance
Minimum rates offered in mid-4% range

KakaoBank is lowering the interest rates on Saehuimangholssi and Sunshine Loan products, taking steps to ease the interest burden for financially vulnerable groups. The bank plans to proactively incorporate the amendments to the Banking Act, which are set to take effect in July, by applying the rate cuts for policy-based financial products for low-income consumers ahead of schedule.

KakaoBank announced on May 15 that it will reduce the interest rates on two of its current inclusive finance products, Saehuimangholssi II and Sunshine Loan. The interest rate for Saehuimangholssi will be lowered by 0.30 percentage points. Saehuimangholssi is a customized product for low-income or low-credit consumers who have difficulty obtaining loans from traditional banks. It is an unsecured personal loan funded by the bank’s own resources.

The Sunshine Loan interest rate will be reduced by 0.75 percentage points. This year, in line with the Korea Inclusive Finance Agency’s overhaul of policy finance for low- and moderate-income groups, KakaoBank has rebranded its existing Sunshine Loan 15 and Sunshine Loan Bank products as “Sunshine Loan General” and “Sunshine Loan Special”, respectively, and is now offering these new products.

This reduction in Sunshine Loan rates is a preemptive measure reflecting the amendments to the Banking Act that will take effect in July. The amendments stipulate that banks will no longer be able to factor in contributions to the Korea Inclusive Finance Agency when calculating loan interest rates. KakaoBank aims to alleviate the financial burden on low-credit borrowers by implementing the anticipated rate cuts more than a month ahead of schedule.

As a result of these measures, KakaoBank plans to offer Saehuimangholssi and Sunshine Loan products at minimum annual interest rates in the mid-4% range. Through this, the bank seeks to expand inclusive finance for financially vulnerable groups, including those with low or moderate credit and limited financial history. A KakaoBank representative stated, “We have lowered interest rates to help ease the financial burden on borrowers facing economic difficulties,” adding, “We will continue to lead the way in inclusive finance for financially vulnerable individuals, including those with low or moderate credit and limited financial history, by providing competitive rates and convenience.”

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