Gyeongnam Bank Launches Mid-Interest Rate Personal Loan Product... Interest Rates 5.2~13%

[Asia Economy Reporter Minyoung Kim] BNK Gyeongnam Bank is launching a mid-interest rate credit loan product with an annual interest rate of 5.2% to 13%.

Gyeongnam Bank announced on the 22nd that it will launch the ‘BNK Deo Joeun Mid-Interest Rate Credit Loan’ on the 29th to ease the interest burden for customers with mid-to-low credit scores and those currently using high-interest loans.

The BNK Deo Joeun Mid-Interest Rate Credit Loan applies a personal credit evaluation system introduced in cooperation with NICE Information Service, using artificial intelligence (AI) machine learning techniques to assess the repayment ability and willingness of financially marginalized groups and immediately determine loan approval.

Applications are open to individuals and sole proprietors with an annual income of 10 million KRW or more. The maximum loan limit is up to 30 million KRW, with sole proprietors eligible for up to 20 million KRW.

The interest rate ranges from a minimum of 5.2% to a maximum of 13%, with sole proprietors starting at a minimum of 5.8%.

If the borrower repays without delinquency after loan disbursement, they can receive an interest rate reduction benefit of up to 2.0 percentage points.

The loan term is up to 5 years, and repayment can be made through either equal principal installments or equal principal and interest installments without a grace period.

Choi Woo-hyung, Deputy Head of Gyeongnam Bank, said, “In line with the government’s inclusive finance expansion policy, we expect this to be a great help not only to customers who were rejected for loans due to low credit ratings but also to those who are currently paying high-interest loans at other financial institutions.”