KB Kookmin Bank said on Thursday it has launched the KB Kookmin Do-yak Loan, a refinancing product for non-bank lenders, to strengthen support for financially vulnerable groups.

The KB Kookmin Do-yak Loan converts credit loans from non-bank lenders into lower-rate loans from banks. The bank newly introduced it by revamping the Kookmin Hope Loan launched in 2023. Eligible applicants are customers who have used a non-bank credit loan for at least 6 months.

KB Kookmin Bank set no requirements for annual income or length of employment to improve access to the product. As a result, salaried workers as well as self-employed people and freelancers can also apply.

It capped the maximum interest rate at 9.5 percent a year or lower to strengthen the effect of easing borrowers' actual interest burdens. The same rate applies after the loan is executed, so it will not exceed 9.5 percent a year even if the benchmark rate rises during the repayment period.

The bank also introduced a credit scoring model based on alternative data for young people and mid- to low-credit borrowers, known as thin-filer customers, who lack financial transaction history.

A KB Kookmin Bank official said, "We hope this product will provide practical help in easing interest burdens for financially vulnerable groups." The official added, "We will continue to reduce blind spots in financial support and expand support for vulnerable borrowers."