Shinhan Bank Temporarily Waives Early Repayment Penalties on Household Loans Until End of November

by Yoo Jaehoon

Published 25 Oct.2024 09:30(KST)

Shinhan Bank has decided to temporarily waive prepayment penalties on household loans to alleviate borrower burdens during the period of high interest rates and high inflation.

Shinhan Bank, Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Shinhan Bank announced on the 25th that prepayment penalties will be waived only for household loans executed by September 30. However, fund loans, securitized loans (such as Bogeumjari Loan, Didimdol securitization conditional loans, etc.), interim payment and relocation cost loans, and loans newly taken out from October 1 are excluded from this benefit.

Typically, if household loans are repaid within three years of loan execution, fixed interest rate loans incur fees of 0.8?1.4%, and variable interest rate loans incur fees of 0.7?1.2%. Shinhan Bank will temporarily waive such prepayment penalties on household loans for about one month starting from today.

This measure will be in effect from today until November 30, and when prepayment is made at Shinhan Bank branches or through the Shinhan SOL Bank application, the penalty will be automatically waived.

A Shinhan Bank official stated, "We have decided to temporarily waive prepayment penalties to reduce the repayment burden on borrowers struggling with high interest rates and high inflation, and to fulfill our social responsibility by easing financial costs." The official added, "Depending on the household loan situation, this waiver measure may be extended."