Shinhan Bank Launches 'Green Remodeling Secondary Loan Support'

Support for Loan Interest at 3.0% Annually with a Maximum Limit of 50 Million KRW for Individual Customers

[Asia Economy Reporter Kwangho Lee] Shinhan Bank announced on the 1st that it has launched the 'Shinhan Green Remodeling Secondary Interest Subsidy Loan,' which supports funds for energy performance improvement construction such as insulation and window replacement of existing buildings for individual customers.

Green remodeling is a project that converts old buildings with high energy consumption into green buildings to improve energy efficiency and performance. It is promoted by the Ministry of Land, Infrastructure and Transport and the Korea Land and Housing Corporation for public and private buildings.

The loan target is homeowners who have received project approval and loan recommendation from the Green Remodeling Creative Center of the Korea Land and Housing Corporation. The loan limit is 20 million KRW for multi-family housing (apartments, row houses, multi-unit houses) and 50 million KRW for single-family houses. Depending on the energy performance improvement rate, the Ministry of Land, Infrastructure and Transport supports loan interest at an annual rate of 3.0% (4.0% for low-income households).

For example, if the loan interest rate is confirmed at 3.5% per annum after loan screening, the customer receives a 3.0% annual interest subsidy and only bears 0.5% annual loan interest.

The loan period is 5 years, with monthly repayment of principal and interest in installments. The fee incurred for early repayment during the loan period is also supported by the Ministry of Land, Infrastructure and Transport.

Loan applications can be made at Shinhan Bank branches after the customer selects a construction company, applies for the project at the Green Remodeling Creative Center, and obtains the Green Remodeling Project Confirmation and Green Remodeling Project Completion Confirmation.

A Shinhan Bank official said, "We launched the Green Remodeling Secondary Interest Subsidy Loan to reduce the financial burden and activate the green remodeling project that improves residential energy performance and reduces carbon emissions." He added, "We will continue to practice green finance that responds to the Green New Deal policy and achieves mutual development with customers."