Woori Bank Reduces Preferential Interest Rates on Auto Loans Following Credit Line Reduction

[Asia Economy Reporter Seong Giho] Woori Bank has decided to raise the interest rate on auto loans by 0.4 percentage points.

According to the financial sector on the 2nd, Woori Bank will reduce the maximum preferential interest rate margin of the 'Woori Dream Car Loan' from 0.9 percentage points to 0.5 percentage points starting today. The preferential interest rate items have also been adjusted. The preferential interest rate of 0.1 percentage points, which was given for monthly automatic transfers of taxes and public charges or management fees, has been removed.

Additionally, the preferential interest rate for eco-friendly vehicles (hybrid, electric, hydrogen cars) has been reduced from 0.7 percentage points to 0.4 percentage points, and the preferential interest rate for new car purchases (including new car refinancing loans) has been reduced from 0.5 percentage points to 0.1 percentage points. On the other hand, the dealer introduction preferential interest rate has been increased from 0.1 percentage points to 0.4 percentage points.

Regarding this, a Woori Bank official explained, "This is from the perspective of managing household debt and auto loan risk."

Since last year, banks have started to reduce preferential interest rates on personal credit loans and cut the limits on overdraft accounts in accordance with government policies to manage household debt. Recently, the trend has been to raise interest rates on mortgage loans, jeonse deposit loans, and auto loans as well.