NH Nonghyup Bank, Highest Acceptance Rate for Interest Rate Reduction Requests

Last Year’s Interest Rate Cut Acceptance Rate: 1st Among the Top 5 Banks

NH Nonghyup Bank actively accepted interest rate reduction requests among the five major commercial banks in the second half of last year.

The 'right to request an interest rate reduction' is a system that allows individuals or companies to request a reduction in loan interest rates from financial institutions when their credit status or repayment ability improves after receiving a loan.

This has been legislated and implemented since June 12, 2019, under the Specialized Credit Finance Business Act.

According to data from the Korea Federation of Banks, the acceptance rate of interest rate reduction requests by the five major commercial banks?NH Nonghyup, Shinhan, KB Kookmin, Hana, and Woori Bank?in the second half of last year was 36.2%. A total of 388,069 requests for interest rate reductions were received, of which 140,617 were accepted.

Image courtesy of Gyeongnam Nonghyup

Nonghyup Bank recorded an interest rate reduction acceptance rate of 69.3% (11,257 accepted out of 16,235 requests) in the second half of last year, maintaining its top position following the first half. It was followed by Woori Bank (37.9%), KB Kookmin Bank (36.9%), Shinhan Bank (33.0%), and Hana Bank (26.9%).

The highest interest rate reductions were seen at Nonghyup Bank and Hana Bank. The reduction margin for household and corporate loans at both banks was 0.40 percentage points.

A financial industry official stated, “Requests for interest rate reductions can be consulted when there are reasons for improvement compared to the loan agreement time, such as improved credit status or increased annual income,” and added, “Acceptance of interest rate reduction requests is judged based on comprehensive information including individual creditworthiness and financial transaction status.”

This content was produced with the assistance of AI translation services.