BNK Busan Bank said on the 26th that it has jointly launched an unsecured personal loan product with Kbank.
The interest rate applies the lower rate derived from the two banks' credit evaluation models, with the minimum at 4.31% per year as of the day. The maximum loan limit is 220 million won.
Eligible borrowers are salaried workers who have been employed at their current workplace for at least six months and earn at least 20 million won annually. They must meet certain credit score requirements, and various repayment methods are offered, including bullet repayment at maturity and equal principal-and-interest installments. The early repayment fee is waived.
Under this product, the two banks each conduct screening, jointly decide the loan limit and interest rate, and, upon approval, share the loan funds 50-50. Everything from application and screening to disbursement and repayment is 100% non-face-to-face.
This service was designated as an "innovative financial service" by the Financial Services Commission (FSC) in July.
Bang Seong-bin, head of Busan Bank, said, "By combining Busan Bank's screening capabilities with Kbank's digital capabilities, we can offer customers more favorable terms," and added, "We plan to expand the scope of cooperation to productive finance for sole proprietors going forward."