As financial authorities have decided to manage group loans related to housing supply separately from household loan limits, banks are reviving their balance loan operations. For the D.H. Bangbae project in the Bangbae-dong area of Seocho-gu, Seoul, the top five banks have allocated a total loan limit of 1.55 trillion won.
According to the financial sector on August 21, NH Nonghyup Bank has increased its balance loan limit for D.H. Bangbae from 100 billion won to 300 billion won, tripling it. The variable rate product linked to the new handling amount based on the six-month COFIX has also seen a reduction in the additional interest rate from 1.6 percentage points to 1.5 percentage points.
Other banks have also raised their loan limits. Shinhan Bank increased its limit from 100 billion won to 400 billion won, while Hana Bank raised its limit to 350 billion won and KB Kookmin Bank to 300 billion won. Woori Bank also increased its limit from 100 billion won to 200 billion won.
As a result, the total balance loan limit provided by the five major banks for D.H. Bangbae has surged from 500 billion won to 1.55 trillion won in just one day. There is a possibility that banks may further increase their limits depending on loan demand.
A competitive interest rate environment is also emerging as banks vie for loan volume. In addition to NH Nonghyup Bank, KB Kookmin Bank and Shinhan Bank have each lowered their additional interest rates by 0.1 percentage points. This move not only increases loan limits but also reduces rates to secure borrowers.
The shift in the banking sector's operational stance comes after financial authorities recently relaxed the management of household loan limits. The authorities have decided to manage group loans arising from housing supply processes, such as relocation costs for reconstruction and redevelopment and interim and balance loans for new complexes, separately from the household loan limits set for each financial institution.
* This article has been translated by AI.
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