Search results for household credit
Fintech
On2U firms, savings banks linked-investment loans top 500 billion won, expand lending to mid-low credit borrowers
Cumulative personal credit loans jointly supplied by online investment-linked finance firms and savings banks have exceeded 500 billion won, with most users classified as mid-to-low credit borrowers and the delinquency rate below 1 percent. The Korea Online Investment-Linked Finance Association put the total at 502.2 billion won as of July 3. It said the average interest rate is 11.95 percent a year and the average borrower credit score is 739.
Finance
Post offices and internet banks to step up joint loans to fill regional finance gaps
Post offices and internet banks in South Korea are moving to fill gaps left by shrinking bank branches, expanding access to loans for older people and local small merchants through nearby counters and mobile apps. The Financial Services Commission announced measures including a post office bank agency pilot, joint loans between regional banks and internet banks, and local government-linked mutual aid insurance. The plan also includes preferential loan terms and support to launch joint-loan products by 2027.
Finance
Shinhan Bank tightens credit loan controls, limits non-face-to-face applications
Shinhan Bank will tighten management of credit loans in response to rising household debt. It will temporarily adjust the volume of non-face-to-face credit loan applications, limiting such requests when combined daily face-to-face and non-face-to-face intake exceeds internal standards. Support products for financially vulnerable groups will be excluded. The bank will also strengthen overdraft limit management, cutting limits by up to 20 percent at renewal for certain low-utilisation accounts.
