Busan Bank Launches Innovative Financial Service "Joint Loan" with K Bank

BNK Busan Bank announced on November 26 that it will officially launch the “Joint Loan Service” in partnership with internet bank K Bank. This service was designated as an “innovative financial service” by the Financial Services Commission in July.

The newly launched joint loan allows both banks to conduct their own credit assessments, jointly determine loan limits and interest rates, and share the loan amount equally on a 50:50 basis upon approval. All procedures, from loan application to contract, execution, and repayment, can be completed through the K Bank mobile application (app). Customers do not need to submit documents or visit a bank branch in person, as the entire process-including notification of screening results and issuance of certificates-is provided non-face-to-face.

The interest rate applied to customers is the lower of the two rates calculated based on each bank’s credit evaluation model, with the minimum annual rate starting at 4.31% (as of November 26, floating rate). The maximum loan limit is 220 million won.

Eligible applicants are salaried employees who have been with their current employer for at least six months, have an annual income of at least 20 million won, and meet a certain credit score threshold. Various repayment options are available, including lump-sum repayment at maturity and equal principal and interest repayment, and there are no early repayment fees.

Busan Bank expects that this joint loan will help the bank overcome the limitations of being a regional financial institution by establishing a nationwide channel for acquiring new customers, thereby strengthening its digital competitiveness.

Busan Bank President Bang Seongbin stated, “By combining Busan Bank’s long-standing credit assessment expertise with K Bank’s digital capabilities, we are now able to offer loans to financial consumers under more favorable conditions. The joint loan is the first step in pursuing various collaborative projects with K Bank, and we plan to expand into a range of areas, including productive finance for individual business owners, in the future.”