4th Impression Book... Strengthening Household Loan Management
Loan Growth Not Curbed Despite Consecutive Interest Rate Hikes
KB Kookmin Bank announced on the 5th that it will further raise loan interest rates as part of strengthening household loan management. This is the fourth rate hike following three increases last month and on the 2nd of this month.
According to the financial sector, KB Kookmin Bank has decided to raise the interest rates on loan products such as 'KB Mortgage Loans (Variable and Mixed)' and 'KB General Real Estate Secured Loans' by 0.3 percentage points each starting from the 8th. Previously, KB Kookmin Bank raised mortgage loan rates by 0.13 percentage points and 0.2 percentage points on the 3rd and 18th of last month, respectively. From the 29th, refinancing and multi-homeowner mortgage loans were also restricted. On the 2nd of this month, the interest rates on Jeonse deposit loans were uniformly increased by 0.3 percentage points.
Major commercial banks have been raising interest rates one after another since early last month due to pressure from financial authorities to strengthen household loan management, but the steep increase in loans continues. The outstanding household loans of the five major banks reached 715.7383 trillion won at the end of last month, increasing by 7.166 trillion won in just one month. This marks the largest monthly increase in three years and three months since April 2021, when loans increased by 9.2266 trillion won.
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