Military Mutual Aid Association and Shinhan Bank Sign Member Loan Business Agreement

The Military Mutual Aid Association and Shinhan Bank will 'reduce the interest rate on deposit-type lump-sum secured loans by 0.75%p' and, in addition to the existing retirement benefit secured loans and lump-sum secured loans, will newly launch 'pension-type installment loans, installment-type and pension-type lump-sum secured loans, and other member savings secured loans.'

On the 22nd, the Military Mutual Aid Association announced, "The day before, we signed a 'member loan business agreement for the stabilization of life and welfare improvement of military personnel and civilian military employees' with Shinhan Bank," revealing this.

Jung Jae-gwan, Chairman of the Military Mutual Aid Association (third from the left), and Jung Sang-hyuk, President of Shinhan Bank (fourth from the left), are posing for a commemorative photo after signing a business agreement on the 21st.
[Photo by Military Mutual Aid Association]

Through this business agreement, starting from the end of next month, the interest rate on deposit-type lump-sum secured loans will be reduced by up to 0.75%p to 4.74%. Considering that the current market bank loan interest rates are in the mid-to-high 5% range, this is expected to help stabilize members' lives.

The Military Mutual Aid Association operates retirement benefit secured loans and lump-sum secured loan systems in partnership with commercial banks for the convenience of its members. Since last year, it has been continuously working to lower member loan interest rates to be below the interest rates of member savings products.

Meanwhile, the Military Mutual Aid Association is preparing to allow secured loans against all savings products. Currently, member savings secured loans are limited to member retirement benefits and deposit-type lump-sum savings, but starting from January next year, it is consulting with Shinhan Bank on product design and system development to allow loans up to 90% of the principal for other savings products such as ▲pension-type installment payments ▲installment-type lump-sum savings ▲pension-type lump-sum savings.