KakaoBank said on the 16th that it launched a joint loan product, "Gachi Loan," together with Jeonbuk Bank under JB Financial Group.
"Gachi Loan" is a product in which KakaoBank and Jeonbuk Bank split the loan amount in half. When a customer applies for a loan in the KakaoBank app, the two banks each conduct their own screening and then jointly determine and handle the loan limit and interest rate. It was designated as an innovative financial service by the Financial Services Commission (FSC) in Apr.
The two companies will use their respective credit evaluation capabilities and screening expertise together to offer loan services to customers at more favorable rates. A credit loan product for salaried workers has a limit of up to 200 million won. The interest rate is 4.486%–6.794% per year (as of today), and borrowers can choose between a lump-sum repayment at maturity and equal principal and interest installment repayment. The prepayment penalty is waived.
Not only loan applications but also loan management services are provided through the KakaoBank app. Customers can use all loan management services, including principal and interest repayment on the loan and applying for an interest rate reduction request right, in one place at KakaoBank.
KakaoBank said, "We will continue to collaborate with regional banks, including reviewing an expansion of joint loan offerings going forward."