Bank lending rates for unsecured loans have surpassed 4% for the first time in 1 year and 2 months.
According to the financial sector on the 18th, on the 13th, right before the holiday, the lending rates for unsecured loans at the five major banks (KB Kookmin, Shinhan, Hana, Woori Bank) were tallied at an annual 4.01%–5.38%. It is the first time since Dec. 2024 that the lower end of unsecured lending rates has exceeded 3%.
The lower and upper ends of unsecured lending rates rose by 0.25 percentage point and 0.15 percentage point, respectively, compared with the 16th of last month. During the same period, the one-year bank bond rate, a benchmark for unsecured lending rates, rose by 0.158 percentage point to 2.943% from 2.785%.
During the same period, the mixed (fixed) mortgage loan rate also stood at 4.36%–6.437%, with the lower and upper ends up 0.23 percentage point and 0.14 percentage point, respectively.
The variable mortgage loan rate also rose by 0.1 percentage point to 3.83%–5.731%. The lower end was 3.83%, but excluding Shinhan Bank's rate reduction benefit (0.5 percentage point) for Seoul exemplary taxpayer, it effectively exceeded 4%.
Household loans have declined for three consecutive months. The outstanding household loan balance at the five major banks was 765.2543 trillion won on the 12th, down 558.8 billion won from the end of January. In January, it decreased by 1.865 trillion won from the previous month, and in December last year, it fell by 456.3 billion won. As the government's loan regulations have reduced the outstanding mortgage loan balance, overall household loans are also contracting.