KB Kookmin Bank will reduce the loan limit for home purchase funds. As it aligns with the financial authorities' stance to curb the rise in household loans, banks' loan tightening is coming into view.
According to the financial sector on the 8th, KB Kookmin Bank will cut the maximum loan limit for home purchase funds in the Seoul metropolitan area and regulated area to 300 million won from the current 600 million won starting on the 10th until further notice. A maximum limit of 300 million won will also apply to home purchase fund loans outside regulated areas.
However, group loans such as relocation expenses, interim payments, and balances, as well as fund loans, Bogeumjari Loan, and purchase and auction-settlement loans for victims of jeonse fraud are excluded from this limit restriction. In addition, KB Kookmin Bank refinancing loans and re-loans with no increase in the loan amount, and debt assumption due to inheritance, will exceptionally not be subject to the limit restriction.
Other commercial banks have not yet implemented similar loan limit cuts. Hana Bank temporarily halted new enrollments in mortgage loan mortgage credit insurance (MCI/MCG) starting on the 1st, and from the 2nd began suspending applications through loan brokers for mortgage loans to be executed in August.
Shinhan Bank has suspended mortgage loan applications for this month and will resume next month. NH Nonghyup Bank has also temporarily halted new enrollments in mortgage loan MCI/MCG, and is capping household funds unsecured loans at 100 million won.