Shinhan Bank launched a refinancing loan product to reduce financing costs for mid to low-credit customers using savings bank credit loans.

Shinhan Bank said on Tuesday it launched the inclusive finance product, Shinhan Sangsaeng Refinancing Loan 2.

Shinhan Sangsaeng Refinancing Loan 2 is a refinancing-only product designed by expanding the support targets of Shinhan Financial Group's Bring Up & Value Up project. It broadened refinancing eligibility to customers using credit loans across all savings banks.

The earlier Shinhan Sangsaeng Refinancing Loan supported a total of 1,670 refinancing cases worth 29.6 billion won from its launch through the end of June this year.

Eligible borrowers are wage earners who have worked at least 1 year and have annual income of at least 20 million won, and who hold savings bank credit loans. The loans eligible for refinancing are credit loans received from savings banks. The limit is up to 100 million won within the range of principal and interest of the loan being refinanced.

The maximum interest rate is 9.8 percent a year. The loan term ranges from 36 months to up to 120 months. Repayment is on an equal principal basis or equal principal-and-interest basis.

Applications can be made at branches and via non-face-to-face channels. Non-face-to-face applications are handled only through the loan transfer system, and are limited to customers using savings bank credit loans from savings banks participating in the system.

A Shinhan Bank official said, "We sought to expand the mutual-growth refinancing support that we have operated for Shinhan Savings Bank customers to all savings banks, to provide more customers with options that can lower financing costs."