KB Kookmin Bank will reduce the loan limit for home purchase funds. In line with the financial authorities' stance to curb the rise in household loans, banks' lending cutbacks appear to be taking shape.
According to the financial sector on the 8th, KB Kookmin Bank will, from the 10th until further notice, reduce the maximum loan limit for home purchase funds in the Seoul metropolitan area and regulated area to 300 million won from 600 million won. A maximum limit of 300 million won will also apply to home purchase fund loans outside regulated areas.
However, collective loans such as relocation expenses, interim payments, and balance payments, as well as fund loans, Bogeumjari Loans, and purchase and auction funds for victims of jeonse fraud are excluded from this limit. In addition, KB Kookmin Bank refinancing loans and re-lending without an increase in the loan amount, and debt assumption due to inheritance are exceptionally not subject to the limit.
Other commercial banks have not yet implemented similar reductions in loan limits. In the case of Hana Bank, starting on the 1st it temporarily suspended new enrollment in mortgage loan mortgage credit insurance (MCI/MCG), and from the 2nd it began suspending applications through loan brokers for mortgage loans to be executed in August.
Shinhan Bank is suspending mortgage loan applications for this month and will resume next month. NH NongHyup Bank has also temporarily suspended new enrollment in mortgage loan MCI/MCG, and is capping household funds unsecured loans at 100 million won.