Welcome Savings Bank Launches Mid-Interest Loans with Improved Credit Evaluation Model... Interest Rates Starting at 5.9% Per Annum

[Asia Economy Reporter Kim Min-young] Welcome Savings Bank announced on the 26th that it has launched the ‘Welbang Mid-Interest Loan’ product.

The company explained that thanks to the refined Credit Scoring System (CSS), the interest rates will decrease and the loan limits will increase for this Welbang Mid-Interest Loan product. Welcome Savings Bank stated that it improved the CSS by adding various non-financial information such as telecommunications, real estate, and insurance.

According to Welcome Savings Bank, a customer who previously received a loan limit of 10 million KRW with an annual interest rate of 16% can now receive a loan limit of 12 million KRW with an interest rate of 14.3% under the newly applied CSS. This means the limit increases by 20% and the interest rate decreases by about 10% compared to before.

They expect that the additional use of non-financial information will lower the barriers for loan applicants who lack sufficient financial transaction information.

The application condition for this product is employees enrolled in the four major social insurances with a minimum of 6 months of continuous employment. The loan limit is up to 50 million KRW, and the interest rate ranges from 5.9% to 19.4% per annum. There is no early repayment fee, and the repayment period can be up to 60 months.

Applications can be made through the savings bank’s mobile banking platform, Welcome Digital Bank (Welbang) application, and the entire process from application to deposit is conducted non-face-to-face.

A representative from Welcome Savings Bank said, “With the more advanced machine learning-based CSS, we can supply mid-interest products to more customers,” adding, “We will strive to deliver greater financial benefits to customers through the Welbang app.”