Shinhan Bank Cuts Mid-Rate Loan Rates for Mid- to Low-Credit Borrowers by Additional 0.3 Percentage Points

Shinhan Bank announced on the 16th that it has lowered the interest rates on mid-rate loan products by an additional 0.3 percentage points to ease the financial burden on mid- to low-credit customers and expand the supply of private mid-rate loans.

This rate cut targets mid- to low-credit customers who fall within the bottom 50 percent of external credit ratings (NICE or KCB).

It applies to credit loan products that previously had their maximum interest rate capped at an annual 6.9 percent.

The interest rate will be determined by first deducting 0.3 percentage points from each customer's calculated rate, provided that the final rate does not exceed the maximum cap of 6.9 percent per annum.

For instance, if a calculated rate is 7.3 percent per annum, the rate remains at 7 percent after the reduction, still exceeding the upper limit, so the final applied rate will stay the same as before at 6.9 percent per annum.

The same criteria apply to non-face-to-face (digital) credit loan products, and customers must submit a new loan application following the implementation date to receive the revised interest rate standards.
※ Please note: This article was translated by AI and may contain errors.