Daol Savings Bank has launched the Daol mid-interest-rate cost-of-living stabilisation loan, offering up to 10 million won to help mid-to-low credit borrowers secure funds for living expenses.

Daol Savings Bank said on Thursday it launched the Daol mid-interest-rate cost-of-living stabilisation loan for customers who fall into the bottom 50 percent by credit score.

The product is designed to help mid-to-low credit borrowers who struggle to access formal financial institutions secure living funds within their repayment capacity.

Interest rates range from 5.9 to 15.27 percent a year, with a maximum limit of 10 million won. The loan term is up to 120 months.

Debt service ratio rules apply, but the loan is excluded from rules that cap unsecured loan limits within annual income. Borrowers who have already used up unsecured loan limits equal to their annual income can also receive additional loans after screening through Daol Savings Bank's own credit evaluation system.

Borrowers must use the loan for living stabilisation funds and sign an agreement that includes restrictions such as limits on home purchases.

A Daol Savings Bank official said, "We launched the product to reduce the financial burden on mid-to-low credit customers who face difficulties securing living funds." The official added, "We will expand products and services that reflect financial consumers' demand."