Shinhan Bank Cuts Loan Rates for Low to Mid-Credit Borrowers by 0.3%

Shinhan Bank announced on October 18 that it has reduced interest rates by an additional 0.3 percentage points for its mid-credit loan products, effective October 16. This move aims to alleviate the financial burden on low to mid-credit customers and increase the supply of private mid-credit loans.

The rate reduction applies to customers in the lower 50% of external credit scores (NICE or KCB). The affected products include credit loans that previously capped interest rates at 6.9% annually.

The new rates will be calculated by subtracting 0.3 percentage points from the customer's calculated rate, ensuring that the final rate does not exceed the maximum of 6.9%. For instance, if a customer's calculated rate is 6.8%, they will receive a rate of 6.5%. However, if the calculated rate is 7.3%, the final rate will remain at the maximum of 6.9% due to the cap.

The same criteria will apply to non-face-to-face credit loans. To benefit from the new rates, customers must submit a new loan application after the implementation date.

A Shinhan Bank representative stated, "We hope this rate cut will help reduce the interest burden for customers in need of mid-credit loans. We will continue to provide products and services that genuinely assist our customers' financial lives, promoting inclusive finance."