‘Please Lower Loan Interest Rates’ Shinhan Bank Leads in Rate Cuts, Woori Bank Offers the Lowest Rates

Interest Rate Reduction on Household Loans in the First Half of This Year: Shinhan > Hana > Nonghyup > Kookmin > Woori
Reduction Amount per Case: Hana > Shinhan > Nonghyup > Kookmin > Woori

Among the five major commercial banks, Shinhan Bank was found to have granted the largest interest rate cuts upon requests from household loan customers. On the other hand, Woori Bank offered the lowest reduced interest rates, and its average interest reduction per case was also the lowest among the five banks.

The Korea Federation of Banks announced on the 31st the performance results of the interest rate reduction request system for 19 banks in the first half of this year on the consumer portal. The interest rate reduction request system allows borrowers to request a reduction in loan interest rates if their creditworthiness or repayment ability has significantly improved since the loan was taken out.

Among the five major commercial banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?the bank with the largest average reduction in household loan interest rates was Shinhan Bank, which cut rates by 0.39 percentage points on average. This was followed by Hana Bank (0.32 percentage points), Nonghyup Bank (0.30 percentage points), Kookmin Bank (0.15 percentage points), and Woori Bank (0.11 percentage points).

The highest average interest reduction amount per household loan case was at Hana Bank (190,000 KRW), followed by Shinhan Bank (156,000 KRW), Nonghyup Bank (87,000 KRW), Kookmin Bank (64,000 KRW), and Woori Bank (63,000 KRW).

In terms of acceptance rate alone, Nonghyup Bank was the highest at 69.1%. Nonghyup Bank received 13,100 applications for household loans and accepted 9,047 cases. Woori Bank followed with 32,400 accepted cases (34.4%) out of 94,195 applications. Next were Shinhan Bank (26.0%), Kookmin Bank (25.6%), and Hana Bank (18.8%). However, acceptance rates may decrease if the number of applications increases, so it is necessary to also consider factors such as whether banks allow non-face-to-face applications.

[Image source=Yonhap News]