Shinhan Bank said on Thursday it will launch a "savings bank refinancing-only loan" in the first half of this year to reduce the financing cost burden for mid- to low-credit borrowers using savings bank credit loans.

The savings bank refinancing-only loan is an inclusive finance product that expands the "Bring Up & Value Up project" across the savings bank sector. Shinhan Bank plans to bring savings bank customers into the banking sector to reduce interest burdens and support long-term credit improvement.

Through the product, Shinhan Bank will support refinancing for savings bank credit loan customers who have been employed for at least 1 year and have annual income of at least 20 million won. The loan limit is 100 million won, double that of the existing Bring Up & Value Up project, and is available within the outstanding principal and interest of the existing loan.

The loan term is up to 10 years, and repayment will be in instalments of principal. The bank also plans to apply a loan transfer system to enable refinancing through non-face-to-face channels without visiting a branch.

A Shinhan Bank official said, "We prepared this product to ease the financial cost burden for customers using savings bank credit loans and to support their stable settlement in the primary banking sector." The official added, "We will continue to pursue inclusive finance to improve customers' creditworthiness and expand access to financial services."