KB Kookmin Bank said on March 8 it cut by 1 percentage point the interest rate on new loans for its flagship retail finance product, KB Saehuimangholssi II, to ease interest burdens for financially vulnerable groups.

The rate cut is part of the KB Kookmin Happiness Hope Project, which carries the aim of "working with the public to build a better South Korea." It was prepared to reduce interest burdens for financially vulnerable groups through inclusive finance and to promote support for retail finance.

The bank cut the loan interest rate for KB Saehuimangholssi II newly handled from March 6 to 4.47 to 5.47 percent from 5.47 to 6.47 percent, based on an internal credit rating of grade 3 and a loan term of at least 5 years.

Customers who are repaying KB Saehuimangholssi II diligently can receive additional interest rate cuts of up to 2.0 percentage points during the loan term. If they repay without delinquency every 6 months, the interest rate is automatically reduced by 0.2 percentage point each time.

A KB Kookmin Bank official said, "We hope this rate cut helps ease the financial burden of financially vulnerable groups experiencing economic difficulties." The official added, "We will continue to expand support for inclusive finance so that we can grow together with the public and build a better future."