Shinhan Bank to Remove Loan Limit for Jeonse Deposit Loan Recruiters
Woori Bank Plans Additional Limit Allocation Only for Actual Demanders
[Asia Economy Reporter Kwangho Lee] NH Nonghyup Bank is resuming Jeonse loan services. Shinhan Bank has also decided to remove the Jeonse loan limit through loan agents.
According to the banking sector on the 14th, Nonghyup Bank will resume Jeonse loans, which were temporarily suspended last August, starting from the 18th. New household real estate mortgage loans will remain suspended until the end of November as planned.
Shinhan Bank will also normalize the restriction on Jeonse loans through loan agents starting from the 18th. Shinhan Bank had limited the Jeonse loan amount through agents to 500 billion KRW from this month as part of total loan volume management.
Woori Bank plans to allocate additional Jeonse loan limits only to genuine borrowers. Since last month, Woori Bank has been managing total loan volume by applying loan limits ranging from 500 million to several billion KRW per branch monthly.
These measures by commercial banks follow the financial authorities' announcement on the same day that Jeonse loans will be excluded from the total household loan volume management regulations.
The Financial Services Commission, Financial Supervisory Service, Korea Federation of Banks, and the five major commercial banks?KB Kookmin, Shinhan, Hana, Woori, and Nonghyup?held a meeting in the afternoon to ensure the smooth supply of Jeonse and balance payment loans related to genuine demand.
A financial authority official stated, "We will hold frequent inspection meetings to ensure these measures are implemented smoothly from next week."
Additionally, the official added, "Since the pace and scale of household debt increase are too rapid and large, the financial authorities and banking sector will continue efforts to manage household debt."
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