Shinhan Bank will also restrict conditional Jeonse loans in areas outside the metropolitan area.
According to the financial sector on 4th, Shinhan Bank decided to limit the issuance of conditional Jeonse fund loans from the 6th until October.
The restrictions apply to Jeonse fund loans with conditions of ▲ transfer of ownership by the landlord (buyer) ▲ cancellation or reduction of senior claims ▲ disposal of already owned housing.
Although Jeonse fund loans with the transfer condition had already been banned in the metropolitan area under the household loan regulations of June 27, Shinhan Bank has expanded the restricted areas nationwide.
Shinhan Bank will also prohibit Jeonse fund loans for homeowners with one or more properties and all cases of transfer loan applications to other banks.
A Shinhan Bank official noted, "This is a measure to stably supply household loans primarily to actual demanders," adding, "However, to minimize inconvenience for financial consumers, we decided to establish exceptional conditions for loan issuance."
Among the conditional handling targets, those who completed the contract signing and deposit before August 6 or are moving for reasons such as job transfer, children's education, or medical treatment will be recognized as exceptions after review.
Starting from the 8th, Shinhan Bank will temporarily not apply the 6-month COFIX, which was used as the benchmark interest rate for housing collateral loans and Jeonse fund loans, and will change the benchmark rate to the 6-month financial bond in the future through system reforms.
A Shinhan Bank official explained, "This is to reflect the rates, which change daily, into the loan interest rates more quickly during the interest rate decline."