Haetsalron Bank, Minimum Annual Interest Rate 4.9%, Maximum Limit 20 Million KRW
Loans Available Even When Using Low-Income Financial Products
Seogeumwon Encourages Consultation at Bank Counters
[Asia Economy Reporter Jin-ho Kim] Self-employed individual Yoo Seung-ho (42, pseudonym) recently came across news about the launch of ‘Haetsalron Bank,’ which offers bank loans at a low interest rate starting from 4.9%. However, after visiting a self-employed community, Yoo decided not to pursue the loan. He encountered information stating that if one is already using other low-income financial policy products, no loan limit would be granted. Yoo has been faithfully repaying a Saehope Holssi loan for over two years.
To get straight to the point, Yoo received incorrect information. In the case of Haetsalron Bank, since the loan limit is provided within the same-person guarantee limit (30 million KRW) set by the Korea Inclusive Finance Agency, using other low-income financial policy products does not reduce or eliminate the loan limit. The agency emphasizes that it is crucial for borrowers wishing to take out a loan to visit banks or other institutions directly for consultation.
According to the financial sector on the 28th, inquiries about Haetsalron Bank flooded major commercial bank counters and the Korea Inclusive Finance Agency call center starting from its launch day on the 26th.
Haetsalron Bank, a low-income financial policy product, was established to support low-credit and low-income individuals in settling within the banking sector. It features the ability to use loans at low interest rates ranging from 4.9% to 8% per annum, with a maximum limit of 20 million KRW, provided that more than one year has passed since using low-income financial products and that debt or credit conditions have improved.
Consumers’ reactions to Haetsalron Bank are enthusiastic due to the ability to access bank loans at low interest rates and high limits. However, a mistaken belief that loans cannot be obtained if one is already using low-income financial policy products is spreading.
According to the Korea Inclusive Finance Agency, only the Worker Haetsalron and Haetsalron Youth products directly affect the guarantee limit when using Haetsalron Bank. Other major low-income financial policy products such as Haetsalron 15, Haetsalron 17, and Safety Net Loans do not affect the guarantee limit. Even if one currently has a loan, since it does not affect the agency’s guarantee limit, it is explained that Haetsalron Bank can be used up to 20 million KRW depending on the borrower’s credit and debt improvement. Borrowers using Worker Haetsalron and Haetsalron Youth, which do affect the guarantee limit, can also use the service within the guarantee limit.
Therefore, the agency recommends that borrowers wishing to use Haetsalron Bank visit banks directly for consultation. They are concerned that misunderstandings about this matter may spread and result in low usage rates.
The agency plans to collaborate with banks to revamp the system early next month so that users can check their eligibility for Haetsalron Bank through an application (app).
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
