Woori Bank said on the 22nd that it will implement a lending rate cap that limits personal unsecured loan rates to 7% a year or lower regardless of credit score.
Starting Jan. 2 next year, the 7% annual cap will be applied at the time of term extensions (recontracting) for customers who have had unsecured loans for at least one year.
From the first quarter of next year, the scope will be expanded so that customers who have had transactions for at least one year with Woori Bank deposits and installment savings, credit cards, or housing subscription savings and newly apply for unsecured loans will also be subject to a maximum annual rate cap of 7%.
Considering that the current maximum personal unsecured lending rate at Woori Bank is 12% a year, there will be a rate cut effect of up to 5 percentage points.
For the financially underserved, the bank will support emergency living expense loans of up to 10 million won. The targets are members of the financially underserved—such as young adults, homemakers, temporary workers, and people with disabilities—who have had transactions with Woori Bank for at least one year. The lending rate is capped at 7% a year or lower. To ease repayment burdens, the bank will apply an "uneven amortization loan" method that allows borrowers to freely designate monthly repayment amounts. In addition, it decided to suspend all collection activities for individuals and sole proprietors whose loans of 10 million won or less have been in arrears for six years.