Stop accepting new loans, limit the limit… Year-end banknote’loans tightening’ accelerated

News1 DB © News1-Shinhan Bank will stop accepting applications for new household credit loans, excluding ordinary financial products, from the 23rd to the end of the year. KB Kookmin Bank has limited the new loan limit to 20 million won or less by the end of the year, and some banks extend maturity to existing credit lenders, subject to partial repayment.

Shinhan Bank announced on the 22nd that it will only process household credit loan applications received by the 22nd and will stop accepting new credit loans at all branches from the 23rd to the end of the year. Accordingly, new loans are expected to resume on January 4, when the business day of next year begins. However, the emergency living stabilization fund is exceptionally supported after approval by the headquarters.

KB Kookmin Bank decided to block all new household credit loans exceeding 20 million won in principle from the 22nd to the 31st. In addition to the new opening, if the loan amount has already exceeded 20 million won, it will not grant an additional loan approval. This is a measure to further tighten the restrictions on loans following the in principle cessation of all household loans exceeding 100 million won from the 14th. However, loans can be made if the desired loan date is after January 4 of next year or if it is a credit loan with financial support.

From the 22nd, Hana Bank also decided to lower the preferential interest rate for some mortgages and whole household loans by 0.3 percentage points, including hybrid mortgage loans and new housing loans. As early as the end of this month, the limit for high-income professionals will be reduced from 150 million won to 50 million won, so more people are expected to have difficulty in financing. Some banks are also meticulously considering extending the maturity of existing loan users by repaying up to 20% of the loans borrowed last year to extend maturity by half. An official from Bank A said, “We can review various aspects of credit rating declines and loan interest delinquency, and ask for partial repayment.” This means that it cannot be ruled out that existing loan users will continue to be subject to the extension of such restrictions. Before and after last month’s financial authorities took measures to restrict credit loans, commercial banks’ loans are changing between hot and cold baths, increasing volatility. The increase in credit loans of the five major commercial banks exploded to 4,849.5 billion won last month, but reached only 122.5 billion won by the 21st of this month. Some are concerned that the demand for loans will shift to the second financial sector such as savings banks next year due to strong restrictions on credit loans by the authorities. An official from the financial authorities said, “Because there is a large difference in the interest rates of credit loans between banks and two financial sectors, it is difficult to see a balloon effect. 2 Financial sector loans are demanded for living after the new coronavirus infection (Corona 19) crisis, so regulation will be difficult.” However, several financial sector officials said, “As the government’s goal is to catch a surge in credit loans and house prices, regulations can be expanded at any time.”

Reporter Shin Na-ri [email protected]
Reporter Jang Yoon-jung [email protected]