KakaoBank Launches Service for Refinancing Jeonse and Wolse Deposit Loans

KakaoBank announced on the 31st that it will launch a refinancing service for jeonse and monthly rent deposit loans. Since these loans are housing finance products for actual demanders such as low-income and homeless households, KakaoBank expects that this service will reduce the interest burden for actual demand customers.

Previously, refinancing of jeonse and monthly rent deposit loans was only possible non-face-to-face when moving to a new place or when the deposit amount increased. With the expansion of the refinancing loan infrastructure, refinancing of jeonse and monthly rent deposit loans is now possible depending on the interest rate.

KakaoBank had already introduced a refinancing service for jeonse and monthly rent deposit loans based on a non-face-to-face refinancing process in September last year, and with this infrastructure expansion, the service target borrowers have been expanded.

This service is based on a chatbot interface, allowing customers to conveniently check refinancing conditions that are more favorable than their existing loans. Customers who want to refinance their jeonse and monthly rent deposit loans can compare the expected limit and interest rate, as well as the expected annual interest savings when refinancing with KakaoBank, on the application (app) screen. Additional costs such as stamp tax and expected guarantee fees can also be checked.

They hold general products from the Korea Housing Finance Corporation, youth jeonse and monthly rent deposit loans, and SGI jeonse and monthly rent deposit loans, with SGI jeonse and monthly rent deposit loans being the only ones available at internet banks. This loan has a maximum loan limit of up to 500 million KRW with no restrictions on the lease deposit.

All loan interest rates are offered at a minimum annual rate of around 3% (as of the 31st). Interest rate discount benefits are also applied during refinancing. For example, newlyweds within 7 years of marriage can receive benefits of up to 0.2 percentage points. Early repayment penalties for all loan products are fully waived.

The eligible housing includes all types such as apartments, multi-family houses, and row houses. Refinancing is only possible between the same guarantee institutions. The loan limit is within the existing loan balance. If the lease deposit increases due to contract renewal, refinancing with an increased amount is also possible.

A KakaoBank official said, "Until now, refinancing of jeonse and monthly rent deposit loans was difficult unless moving or increasing the deposit, even if better loan conditions were available, causing customers to bear the burden of rising interest rates. We will strive to be chosen by customers during the interest rate hike period by competitively handling a wide range of products from HF general and youth loans to SGI."