Shinhan Bank Launches Mid-Interest Rate Loans for Mid- to Low-Credit Borrowers... Maximum Annual Rate Set at 6.9%

Shinhan Bank will introduce mid-interest rate loans with a maximum annual interest rate of 6.9% for customers whose credit scores fall in the lower 50%. In August, the bank also plans to launch a new mid-interest rate loan product based on an alternative credit assessment model for low-income individuals.

Shinhan Bank exterior view.

On June 23, Shinhan Bank announced that it would implement a ‘Mid-Interest Rate Loan Support Package’ to ease the financial burden for mid- to low-credit borrowers, as part of the group’s “Inclusive Finance 2.0 ON (溫)” project.

The mid-interest rate loan offered by Shinhan Bank targets customers whose external credit rating (NICE or KCB) is within the bottom 50%, and sets an upper limit on the interest rate at 6.9% per annum. If the calculated interest rate is lower, that lower rate will be applied. This product is automatically reflected in personal credit loans, excluding financial products for low-income borrowers, liquidity limit loans, and suggested rate product lines.

The bank has improved its review criteria to reflect repayment ability and financial transaction characteristics, including not only those with low credit ratings, but also those with relatively limited financial histories, such as full-time homemakers and retirees.

The benefits of existing financial products for low-income individuals have also been expanded. The maximum installment repayment period for the Sae-Hope Holssi loan will be extended from the existing 60 months to up to 84 months, and the preferential interest rate for installment repayments will be increased from 0.3 percentage points to 1.1 percentage points.

In addition, the bank plans to introduce the ‘Super SOL Dedicated Mid-Interest Rate Loan’ through its non-face-to-face channels in August, applying an alternative credit assessment model for low-income individuals. This product will evaluate eligibility and loan limits by reflecting customers’ repayment capacity and financial transaction characteristics beyond traditional credit scores, with a focus on further expanding support for mid- to low-credit borrowers.

A representative from Shinhan Bank stated, “This package is meaningful in that it improves the interest rate, screening, and repayment structure for mid- to low-credit customers, thereby genuinely reducing their financial burden.” The representative also added, “We will continue to enhance financial accessibility for vulnerable groups and reduce blind spots in line with the goals of Inclusive Finance 2.0.”

This content was produced with the assistance of AI translation services.