‘Fixed Interest Rate Until Maturity’…K-Bank Launches Fixed-Rate Jeonse Loan Product

Single Interest Rate Regardless of Credit Rating
90% Deposit · Up to 200 Million KRW Loan Available
"Expected to Reduce Interest Burden During Rate Hike Period"

K Bank Launches Fixed-Rate Jeonse Loan Product. Photo by K Bank

K Bank announced on the 29th that it has launched a fixed interest rate jeonse loan product with no interest rate changes until the loan maturity.

Unlike variable interest rate loans where the rate changes periodically, this product applies the same fixed interest rate throughout the loan period. As of this date, the loan interest rate is 3.70% per annum (for a 2-year loan period), and a single rate is applied regardless of credit rating.

Compared to existing jeonse loan products, the loan limit ratio and eligible borrower scope have been expanded. The loan limit is up to 90% of the rental deposit, with a maximum of 200 million KRW within that range. Wage earners and business income earners who have been employed for more than six months are also eligible for the loan.

This product is 100% guaranteed by the Korea Housing Finance Corporation and is targeted at non-homeowners, thus offering enhanced interest rate benefits. The guarantee fee borne by customers is set 0.1 percentage points lower than that of existing jeonse loan products (maximum 0.2%), resulting in an additional interest rate reduction effect.

To commemorate the product launch, a moving expense support promotion is also being held. Among customers who complete the jeonse loan limit inquiry by the 30th of next month, one person will be selected by lottery to receive 1 million KRW for moving expenses. However, to receive the moving expense prize, the jeonse loan must be executed by October 31 of this year. The limit inquiry can be made through the ‘Check Estimated Limit’ feature within the jeonse loan product section of the K Bank application (app). Among customers who complete the limit inquiry during the event period, 300 will be selected to receive Starbucks Americano coupons. The prize drawing will be held in May, and winners will be contacted individually.

A K Bank official stated, “To ease the burden of rising interest payments during the interest rate hike period, we have launched the first fixed interest rate jeonse loan product among internet-only banks,” adding, “We will diversify jeonse loan products to enhance customers’ choices and convenience, and continue to strive to provide various products and services from the customer’s perspective.”