Shinhan Bank cuts interest rates on unsecured loans for mid- to low-credit borrowers by an additional 0.3 percentage points

[Financial News] Shinhan Bank has cut interest rates on mid-rate unsecured loans for mid- to low-credit borrowers by 0.3 percentage points. The change applies to customers whose NICE and KCB credit scores are in the bottom 50%, while the maximum annual rate remains 6.9%.
Industry sources said on the 18th that Shinhan Bank had further cut rates on the relevant products to ease the interest burden on mid- to low-credit customers and expand the supply of private-sector mid-rate loans.
The measure applies to unsecured loan products that had been operated with the maximum rate capped at 6.9% per year. The same criteria apply to non-face-to-face unsecured loan products. The rate is designed to be reduced by 0.3 percentage points from each customer's calculated rate, with the final rate capped at 6.9% per year.
For example, a customer with a calculated annual rate of 6.8% will receive a rate of 6.5% after the reduction. A customer with a calculated annual rate of 7.3% would still have a rate of 7% after the reduction, exceeding the cap, so the final rate remains 6.9% per year, the same as before.
To receive the revised rate, customers must apply for a new loan review after the effective date. The revised rate criteria apply only to newly submitted loan reviews, not existing loans.
Shinhan Bank continues to offer products aimed at improving financial access for mid- to low-credit borrowers. In August, it launched Super SOL Mid-Rate Loan, a non-face-to-face unsecured loan product offering loans of up to 20 million won.
[email protected] Seo Ji-yoon Reporter