March Mortgage Loan Interest Rate 2.73%... Increasing for 7 Consecutive Months

Bank of Korea to Announce 'Weighted Average Interest Rates of Financial Institutions for March 2021' on the 30th

[Asia Economy Reporter Jang Sehee] The mortgage loan interest rate in March was 2.73%, showing an increase for seven consecutive months.

According to the "Weighted Average Interest Rates of Financial Institutions in March 2021" announced by the Bank of Korea on the 30th, the interest rate on savings deposits based on new contracts at deposit banks in March rose by 0.01 percentage points from the previous month to 0.86% per annum. The loan interest rate increased by 0.03 percentage points from the previous month to 2.77%.

The corporate loan interest rate recorded 2.74%, up 0.05 percentage points from the previous month. By company size, the loan interest rate for large corporations rose by 0.06 percentage points from the previous month to 2.52%.

Following 2.41% in January and 2.46% in February, the upward trend continues. The loan interest rate for small and medium enterprises also increased by 0.03 percentage points to 2.88%.

The household loan interest rate fell by 0.07 percentage points from 2.85% to 2.88% per annum. Among these, the mortgage loan interest rate rose by 0.07 percentage points from 2.66% to 2.73%. This is the highest level in 1 year and 9 months since recording 2.74% in June 2019.

Accordingly, the difference between the loan interest rate and the savings deposit interest rate at deposit banks, that is, the loan-deposit margin, increased by 0.02 percentage points from 2.10 percentage points in February to 2.12 percentage points.