IBK Industrial Bank of Korea has launched a total of 1 trillion won in personal credit loans to cut financing costs and the burden of principal and interest repayments for mid-to-low credit borrowers. It applies a single annual interest rate of 4.9 percent without complex preferential conditions and offers additional rate benefits to young customers.

IBK Industrial Bank of Korea said on Thursday it launched the "IBK Good Rate Inclusive Loan" for customers in the bottom 50 percent of personal credit scores. The total supply of loans is 1 trillion won.

"IBK Good Rate Inclusive Loan applies a single annual interest rate of 4.9 percent to all customers without separate, complex preferential rate conditions."

Customers aged 34 and under will receive a preferential interest rate of 0.2 percentage points, allowing them to borrow at an annual rate of 4.7 percent.

The maximum loan limit per person is 20,000,000 won. It can be used under an instalment repayment plan of up to 10 years. A key feature is that it allows borrowers to spread principal repayment over a long period, reducing monthly principal and interest payments.

An IBK Industrial Bank of Korea official said, "We prepared this product to materially reduce interest rates and repayment burdens for mid-to-low credit customers who need financing."