Toss Bank said on the 16th that starting at 6 p.m. on the 18th, it will reduce the maximum limit for unsecured loans to 100 million won from the current 300 million won, and the maximum limit for new overdraft accounts to 50 million won from the current 150 million won.
To prevent a rapid expansion in lending, loan applications may be temporarily restricted if the volume of unsecured loans exceeds an appropriate level. However, Toss Bank said it plans to operate in a way that ensures there are no disruptions to funding for borrowers with mid-to-lower credit scores during this measure to practice inclusive finance.
The criteria for adjusting limits for existing overdraft customers will also be further tightened. Starting on the 24th, accounts with a limit utilization rate of 40% or less over the past three months will be subject to adjustment. Under this measure, the minimum reduction rate will be raised to 30% from the current 20%, and the loan limit may be reduced by up to 40%.
The end date for these adjustment measures is undecided, and the bank said it will respond after comprehensively considering the trend in household lending and market conditions.