KakaoBank announced that starting May 15, it will reduce the interest rate for the New Hope Loan II by 0.30 percentage points.
The New Hope Loan is a tailored product for low-income individuals or those with poor credit who find it difficult to secure loans from banks. The bank will also lower the interest rate for the Sunshine Loan by 0.75 percentage points to support consumers facing challenges in accessing formal financial services. With this rate reduction, the interest rates for both the New Hope and Sunshine loans are expected to fall to the mid-4% range annually.
In July, a revision to banking laws will take effect, prohibiting banks from factoring in contributions from the Korea Inclusive Finance Agency when calculating loan interest rates. In anticipation of this change, KakaoBank is proactively implementing the expected rate cuts more than a month in advance to alleviate the financial burden on low-credit borrowers. The bank plans to continue reviewing improvements to its products for those with low to moderate credit ratings.
A KakaoBank official stated, "We lowered the rates to ease the financial burden on borrowers facing economic difficulties. We will continue to lead in practicing inclusive finance for low to moderate credit individuals and those with insufficient financial history, based on competitive rates and convenience."
* This article has been translated by AI.
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