Jeju Bank has introduced a service that reassesses customers’ credit status each month and lowers loan interest rates without an additional application if rate-cut criteria are met. Customers apply only once. The bank then regularly checks the possibility of a rate cut until the loan is fully repaid.

Jeju Bank said it will roll out the "Dynamic Rate Reduction Service" from Oct. 19 for customers with DJ Bank (DJ Bank) credit loans, the first in the banking sector.

Unlike the existing approach, under which customers must request a rate reduction when their credit status improves, the new service is designed so the bank checks credit status monthly after the initial application and reflects factors for a reduction.

If a customer applies for the service by loan account, the bank will reassess credit status each month from the following month until repayment of that account is completed. If rate-cut criteria are met, the reduced rate will apply without additional applications or agreement procedures. Customers will be notified of the result by text message and through the app.

A rate reduction may not apply even if a customer’s credit status improves, if the change does not affect interest-rate calculations.

The service applies to credit loans among household and corporate loans that use Credit Scoring System (CSS) scores, where credit status affects interest-rate calculations. It will first be applied to DJ Bank credit loan products. Jeju Bank plans to gradually expand the scope after considering operating results and customer demand.

Jeju Bank CEO Hee-soo Lee (이희수) said, "We prepared the service so that improvements in credit status lead to a reduced interest burden." He added, "We will identify financial services that reflect customers’ efforts to improve their credit and expand the scope of application."