"Smartphone Installment Costs Halved"... K-Bank and KT Launch 'Smart Loan'

[Asia Economy Reporter Kiho Sung] K Bank announced on the 30th that it has launched the ‘Smart Loan Credit Loan (Smart Loan)’ product, which reduces interest costs by half when purchasing a smartphone on installment.

According to K Bank, when purchasing mobile devices such as smartphones on installment, an installment fee of 5.9% per annum is usually charged. However, by using 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 1,000,000 KRW is purchased on a 24-month installment plan, an installment fee of about 62,000 KRW is charged over two years, but by using Smart Loan, about 31,000 KRW is billed, resulting in an interest cost reduction rate of nearly half (49.8%).

Smart Loan is a collaborative product introduced by K Bank together with KT, and it is available to all customers using KT device installment plans, 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 it can be used in conjunction with affiliated card discounts. After device activation, customers can access the K Bank app via the SMS link sent or the QR code available at mobile phone stores, allowing a one-stop process from Smart Loan credit loan application to approval and execution within 3 minutes.

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loan amount is automatically paid immediately as the device payment, so it cannot be used for other purposes or withdrawn from the account.

Smart Loan offers a fixed interest rate of 2.99% per annum with a maximum limit of 2,000,000 KRW, and uses an equal principal and interest repayment method.

A K Bank official said, “With the easy-to-apply Smart Loan, customers can reduce device installment costs by nearly half,” adding, “Along with this, since early this month, we have been continuously enhancing benefits that reduce customers’ financial burdens, such as eliminating prepayment penalties on credit loan products.”