Following Woori, Shinhan Bank Also Eases Regulations on Three Types of Jeonse Loans Starting from the 25th

Banks Gradually Ease Jeonse Loan Regulations Amid Restrictions

[Asia Economy Reporter Yu Je-hoon] Following Woori Bank, Shinhan Bank is also significantly easing regulations on jeonse loans. Due to rising interest rates and a sluggish real estate market, household loan demand has decreased, creating an atmosphere in the banking sector to relax loan regulations again.

According to the banking sector on the 22nd, Shinhan Bank will ease the so-called 'three types of jeonse loan regulations' starting from the 25th. First, the application period for jeonse loans will be extended from the previous 'balance payment date' to 'within 3 months from the earlier of the balance payment date or the move-in date,' and non-face-to-face jeonse loans will be allowed again for those who own one house.

The loan limit for jeonse deposits will also be expanded. When renewing a jeonse contract, the loan limit was previously limited to the increase in the deposit amount, but from the 25th, it will be expanded to within 80% of the deposit amount stated in the renewal contract. For example, if the jeonse deposit increased from 100 million KRW to 150 million KRW upon renewal, previously only the increase of 50 million KRW was eligible for a loan, but now loans up to 80% of the deposit, i.e., 120 million KRW, will be possible.

Earlier, Woori Bank also significantly eased jeonse loan regulations starting the previous day, and KakaoBank announced on the same day that it will resume new jeonse and monthly rent deposit loans for one-house owners.