Standard Chartered Bank Korea to Fully Resume Mortgage Loan MCI Coverage Next Month

[Financial News] Standard Chartered Bank Korea will fully resume offering mortgage credit insurance (MCI) for mortgage loans from the first of next month. This comes about two and a half months after the bank suspended the coverage in July as part of its efforts to manage the overall volume of household lending.
According to financial industry sources on the 29th, Standard Chartered Bank Korea will allow MCI coverage for all mortgage loans applied for from the first of next month. The bank suspended MCI enrollment on July 15 and resumed it at the end of August only for apartment balance-payment loans. It is now expanding the coverage to general mortgage loans as well. Standard Chartered Bank Korea does not offer mortgage credit guarantees (MCG) and operates only MCI.
MCI, issued by Seoul Guarantee Insurance (SGI), is insurance that allows borrowers to obtain mortgage loans without deducting small-tenant deposits. Without MCI, regional small-tenant deposits must be deducted from the maximum loan amount calculated based on the loan-to-value ratio (LTV). As a result, resuming MCI coverage will increase the amount of mortgage loans that borrowers can receive.

[email protected] Ye Byeong-jeong Reporter