Kookmin Bank Launches 'KB Kookmin Hope Loan' for Refinancing Secondary Financial Credit Loans

KRW 500 Billion Scale... Interest Rate Also Below 10% Per Year

KB Kookmin Bank announced on the 26th that it will launch the 'KB Kookmin Hope Loan' on the 27th to support vulnerable borrowers struggling with high interest rates and economic slowdown.

The KB Kookmin Hope Loan is a refinancing loan product that converts second-tier financial institution credit loans into lower-interest bank loans. Borrowers with medium to low credit scores who had difficulty obtaining bank loans can reduce their interest costs and improve their personal credit by entering the banking sector through this product.

The target customers for this product are wage earners holding second-tier financial institution credit loans, and applications are open not only to KB Kookmin Bank customers but also to customers of other banks. KB Kookmin Bank plans to support loans totaling 500 billion KRW.

KB Kookmin Bank has significantly relaxed the eligibility criteria to allow as many financial consumers as possible to benefit from the KB Kookmin Hope Loan. Using its internal evaluation model, the bank enables medium to low credit borrowers, including multiple debtors who generally find it difficult to obtain bank loans, to use the product.

The employment period and income requirements for borrowers have also been minimized. Considering young workers, loan applications are possible with at least one year of employment. The income requirement has been significantly lowered to an annual income of 24 million KRW or more, reflecting the 2023 minimum wage level.

The loan interest rate is capped below 10% per annum to effectively reduce the customer's actual interest burden. This cap applies even after the loan is issued, so even if the benchmark interest rate (12-month financial bond) rises during the repayment period, the loan can be used at an interest rate below 10% per annum.

There have been significant changes in the loan limit calculation as well. Generally, multiple debtors holding loans from several financial institutions find it difficult to receive loan limits, but the KB Kookmin Hope Loan grants limits up to 100 million KRW based on credit rating without any reduction or rejection criteria, even for multiple debtors. The final loan amount corresponds to the repayment amount of the borrower's current second-tier financial institution credit loan and can be refinanced within the Debt Service Ratio (DSR) range based on each customer's total loan balance and income.

Loan repayment is made through an installment repayment method, with the option to choose between equal principal installment repayment and equal principal and interest installment repayment. While most second-tier financial institution credit loans are operated with installment repayments within five years, KB Kookmin Bank has extended the repayment period up to 10 years to enhance customer choice. Accordingly, customers can maintain the loan amount while reducing their monthly repayment burden through the KB Kookmin Hope Loan.

A KB Kookmin Bank official stated, "We launched the KB Kookmin Hope Loan to provide practical help to customers who live diligently despite difficult economic conditions," adding, "We will continue to do our best to practice win-win finance for financially vulnerable groups and fulfill our corporate social responsibility."