[DigitalToday reporter Sangyeop Oh (오상엽)] Mirae Asset Securities will cut interest rates on sell-collateral loans and overdue interest on cash margin balances to reduce customers’ financing burdens as market volatility increases.

Mirae Asset Securities said on Sunday it will lower the sell-collateral loan interest rate and the overdue interest rate on cash margin balances as part of customer protection measures.

The sell-collateral loan interest rate will be reduced to 7.95 percent a year from 9.0 percent. The overdue interest rate on cash margin balances will also be lowered to 7.95 percent a year from 9.9 percent.

A sell-collateral loan is a product that allows customers to use short-term funds after selling shares they hold without waiting until the settlement date. The interest rate cut is expected to reduce the burden of using short-term funds. With the overdue rate on cash margin balances also falling, delinquency burdens for customers with outstanding receivables are expected to ease.

The revised rates will take effect from the 27th. For sell-collateral loans, the change will apply to new loans from the effective date. For the overdue interest rate on cash margin balances, it will apply from the effective date, including to existing delinquent customers.

A Mirae Asset Securities official said the company implemented the rate cuts to prepare measures that customers can feel to reduce financing costs amid continued market uncertainty. The official added it will continue to provide systems and services to create a stable investment environment.