Shinhan Bank announced on June 23 that it will implement a "mid-interest loan support package" as part of its inclusive finance initiative.
This initiative is a concrete realization of the Shinhan Financial Group's "Inclusive Finance 2.0 ON" project, which was announced on June 10 with a total budget of 5 trillion won. Shinhan Bank will offer a mid-interest loan with a maximum interest rate of 6.9%, refine its assessment criteria for low- to mid-credit borrowers, and improve repayment conditions for the New Hope Loan. Additionally, a new mid-interest loan specifically for Super SOL will be introduced in August.
The mid-interest loan will be available to low- to mid-credit borrowers with a maximum interest rate of 6.9%. If the calculated interest rate for borrowers in the bottom 50% of external credit scores (NICE or KCB) exceeds 6.9%, the maximum rate will apply. If the calculated rate is lower, that rate will be used. However, this does not include personal loans categorized as low-income finance, liquidity limit loans, or suggested rate products.
Shinhan Bank has also refined its assessment criteria for low- to mid-credit borrowers. The criteria now take into account not only lower credit ratings but also customers with limited financial transaction histories, such as homemakers and retirees, allowing for a more comprehensive evaluation of repayment ability and financial transaction characteristics. Mid-interest loans can now be offered with a maximum difference of 2 percentage points from the average interest rate for high-credit borrowers.
The benefits of existing low-income financial products have also been expanded. The repayment period for the New Hope Loan has been extended from a maximum of 60 months to 84 months, and the preferential interest rate for installment repayments has increased from 0.3 percentage points to 1.1 percentage points, easing the repayment burden.
Furthermore, Shinhan Bank plans to introduce a "Super SOL exclusive mid-interest loan" in August, utilizing an alternative credit evaluation model for low-income individuals. A bank official stated, "We will continue to enhance accessibility for financially vulnerable groups and reduce blind spots in line with the spirit of Inclusive Finance 2.0."
In addition, Shinhan Bank aims to increase its mid-interest loan customer base by advancing its credit evaluation model. The bank developed an alternative credit evaluation model for low-income individuals at the end of last year, which assesses repayment ability using non-financial data such as living expenses, utility bills, and automatic payment histories, and has been applying it to low-income credit loan assessments since March.
This initiative is a concrete realization of the Shinhan Financial Group's "Inclusive Finance 2.0 ON" project, which was announced on June 10 with a total budget of 5 trillion won. Shinhan Bank will offer a mid-interest loan with a maximum interest rate of 6.9%, refine its assessment criteria for low- to mid-credit borrowers, and improve repayment conditions for the New Hope Loan. Additionally, a new mid-interest loan specifically for Super SOL will be introduced in August.
The mid-interest loan will be available to low- to mid-credit borrowers with a maximum interest rate of 6.9%. If the calculated interest rate for borrowers in the bottom 50% of external credit scores (NICE or KCB) exceeds 6.9%, the maximum rate will apply. If the calculated rate is lower, that rate will be used. However, this does not include personal loans categorized as low-income finance, liquidity limit loans, or suggested rate products.
Shinhan Bank has also refined its assessment criteria for low- to mid-credit borrowers. The criteria now take into account not only lower credit ratings but also customers with limited financial transaction histories, such as homemakers and retirees, allowing for a more comprehensive evaluation of repayment ability and financial transaction characteristics. Mid-interest loans can now be offered with a maximum difference of 2 percentage points from the average interest rate for high-credit borrowers.
The benefits of existing low-income financial products have also been expanded. The repayment period for the New Hope Loan has been extended from a maximum of 60 months to 84 months, and the preferential interest rate for installment repayments has increased from 0.3 percentage points to 1.1 percentage points, easing the repayment burden.
Furthermore, Shinhan Bank plans to introduce a "Super SOL exclusive mid-interest loan" in August, utilizing an alternative credit evaluation model for low-income individuals. A bank official stated, "We will continue to enhance accessibility for financially vulnerable groups and reduce blind spots in line with the spirit of Inclusive Finance 2.0."
In addition, Shinhan Bank aims to increase its mid-interest loan customer base by advancing its credit evaluation model. The bank developed an alternative credit evaluation model for low-income individuals at the end of last year, which assesses repayment ability using non-financial data such as living expenses, utility bills, and automatic payment histories, and has been applying it to low-income credit loan assessments since March.
* This article has been translated by AI.
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