To Save on Smartphone Installment Interest, Use K-Bank's 'Smart Loan'

Device Installment Fee 5.9% per Year → Smart Loan 2.99% per Year
Interest Cost Halved When Purchasing a 1 Million Won Device

[Asia Economy Reporter Jin-ho Kim] K Bank announced on the 30th that it has launched the ‘Smart Loan Credit Loan (hereinafter Smart Loan)’ product, which reduces interest costs by half when purchasing a smartphone on installment. The Smart Loan offers a fixed annual interest rate of 2.99% with a maximum limit of 2 million KRW.

Typically, when purchasing mobile devices such as smartphones on installment, an installment fee of 5.9% per annum is charged. However, by using K Bank’s Smart Loan, customers only need to pay an interest rate of 2.99% per annum instead of the installment fee.

For example, if a device worth 1 million KRW is purchased on a 24-month installment plan, an installment fee of approximately 62,000 KRW is charged over two years, but by using the Smart Loan, about 31,000 KRW is billed, reducing the interest by half.

The Smart Loan is a collaborative product launched by K Bank in partnership with KT, and it is available to all customers using KT device installments, including existing installment customers. There are no separate performance conditions, and anyone with a K Bank deposit and withdrawal account can apply. It applies not only to smartphones but also to all wireless devices such as feature phones, and can be used in conjunction with affiliate card discounts.

However, since the loan amount is automatically paid immediately as the device payment, it cannot be used for other purposes or withdrawn from the account.

A K Bank official said, “With the Smart Loan, which can be easily applied for, customers can reduce device installment costs by nearly half,” adding, “Furthermore, since early this month, we have been continuously enhancing benefits that reduce customers’ financial burdens, such as eliminating early repayment fees on credit loan products.”