Shinhan Bank Temporarily Suspends Household Loan Broker Applications... Also Adjusts Interest Rates

Shinhan Bank will temporarily suspend the acceptance of loan applications from loan solicitors to stabilize household loans, strengthen the screening of mortgage loans, and also adjust household loan interest rates. Shinhan Bank announced on the 25th that it will sequentially implement the "Management Plan for Stabilizing Household Loans" containing these measures starting from the 27th.

First, the acceptance of loan applications from loan solicitors for mortgage loans, jeonse deposit loans, and group balance loans will be temporarily suspended. However, applications for interim payments, moving expenses, Tops real estate loans, My Car loans, and reverse mortgage loans under the Housing Pension scheme will still be accepted. Additionally, Shinhan Bank will conduct headquarters-level screening when newly handling mortgage loans for living stabilization funds.

From the 4th of next month, interest rates on mortgage loans and jeonse deposit loans will also be adjusted. For new mortgage loans, the long-term preferential interest rate for five years or more (previously 0.1 percentage points) will be eliminated, and the 6-month rate (limited to new balances) will be increased by 0.2 percentage points. For mortgage loans intended for living stabilization funds, both the 5-year and 10-year financial bond rates will be increased by 0.1 percentage points. The 6-month rate (limited to new balances) will be increased by 0.2 percentage points.

In addition, for jeonse deposit loans, the Korea Housing Finance Corporation (HF) products will see an increase of 0.1 percentage points for 6-month and 1-year terms, and 0.45 percentage points for 2-year terms, while SGI Seoul Guarantee products will increase by 0.3 percentage points. Korea Housing & Urban Guarantee Corporation will increase by 0.1 percentage points for both 6-month and 1-year terms, and 0.4 percentage points for 2-year terms.

Shinhan Bank stated, "This plan is a temporary measure to be implemented until the stabilization of household debt is achieved," and added, "For cases judged to be genuine demand before branch applications, the dedicated team in charge will continue to support the screening process."