Banks Reopening Loan Applications, Kookmin and SC Jeil Banks 'Resume Lending' (Comprehensive)

[Asia Economy Reporter Jin-ho Kim] Banks have begun to resume loan processing, which had been suspended due to the overall management of household debt volume. They are lifting stringent measures such as imposing loan limits by branch and are also conducting advance applications for loans for next year. This is interpreted as a result of having some leeway in total volume management due to strong loan tightening.

According to the financial sector on the 15th, Kookmin Bank lifted the measure of managing new household loan limits by branch as of this day. Originally, this measure was scheduled to be implemented until the end of the year, but it was terminated early. A Kookmin Bank official said, "Although there is not much time left this year, borrowers are expected to have some breathing room."

Earlier, Kookmin Bank had managed new household loan limits by branch since early October. At that time, the household loan balance had increased by 5% compared to the end of the previous year, approaching the government's recommended rate for this year (5-6% annually).

Additionally, Kookmin Bank resumed mortgage credit insurance (MCI) and mortgage credit guarantee (MCG) loans, which had been suspended, starting from the 13th. Refinancing loans have also resumed. Customers can again use new loans with the condition of repaying other banks' mortgage loans, jeonse deposit loans, and credit loans by switching to Kookmin Bank loans with lower interest rates under the 'other bank loan repayment condition' program.

SC First Bank, which temporarily suspended mortgage loan processing this year, is conducting advance applications for new mortgage loans for next year. SC First Bank will accept advance applications from the 20th for customers who wish to use new mortgage loans (First Home Loan) next year. The loan execution date will be from January 3rd of next year.