KB Kookmin Bank said Sunday it cut the interest rate on new loans under its flagship low-income product, the “KB Saehuimang Holssi II,” by 1 percentage point on March 6 to ease interest burdens for financially vulnerable borrowers.
The loan rate for the product fell to an annual 4.47% to 5.47% from 5.47% to 6.47%, based on the bank’s internal credit grade 3 and a loan term of at least five years.
Customers who repay the “KB Saehuimang Holssi II” loan on schedule can also receive up to an additional 2.0 percentage points in rate reductions during the loan term. The rate is automatically reduced by 0.2 percentage point every six months if payments are made without delinquency.
A bank official said the cut is intended to help reduce the burden on financially vulnerable people facing economic hardship, adding that the bank will continue to expand inclusive finance support so it can grow with the public and help build a better future.
* This article has been translated by AI.
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