[DigitalToday reporter Ji-young Lee (이지영)] Hana Bank has launched an online-only mid-rate unsecured loan product to improve financial access for mid-to-low credit borrowers. It applies a fixed annual interest rate of 5.5 percent and a maximum limit of 10 million won. The bank aims to reduce the interest burden for users of high-rate loans and expand funding for mid-credit borrowers.

Hana Bank said on June 19 it launched the online unsecured loan product, the "Hana OneQ Assured Mid-Rate Loan".

The product targets customers in the bottom 50 percent of personal credit scores. The loan limit is up to 10 million won and it applies a fixed annual interest rate of 5.5 percent.

Hana Bank plans to supply the product on a total scale of 2 trillion won. It is designed with a fixed rate so borrowers can plan repayments without the burden of interest-rate fluctuations.

The bank also improved the structure of existing mid-rate loan products that were centered on salaried workers. It expanded eligibility and focused on reducing the interest burden for customers using high-rate loans through "loan refinancing".

The company said the product is the first self-run mid-rate loan product among banks. It said it could reduce blind spots in financial services for mid-to-low credit borrowers and also contribute to easing the market's interest-rate cliff effect.

A Hana Bank official said, "This is part of efforts to ease the high interest-rate burden faced by mid-to-low credit borrowers and lower barriers to finance." The official added, "We will continue to expand practical inclusive finance for customers in financial blind spots."