Mid-Interest Personal Stabilization Loans Launched for Bottom 50% Credit Scores... Interest Rates from 5% to 15%

Up to 10 Million Won Combined Limit per Borrower Across All Financial Institutions
Launched by Six Savings Banks Including KB
Loan Limits Set Based on Internal Reviews

Starting June 29, mid-interest personal stabilization loans with annual rates ranging from 5% to 15%, designed for borrowers in the bottom 50% credit rating bracket—including those with mid- to low credit scores—have been launched. Borrowers can utilize up to a combined maximum of 10 million won across all financial institutions.

The Financial Services Commission announced that, together with the Financial Supervisory Service and the savings bank industry, it visited a Shinhan Savings Bank branch on this day to inspect the launch status of the mid-interest personal stabilization loan.

This mid-interest personal stabilization loan is a follow-up measure to the “Mid-Interest Loan Activation Plan” announced at the fourth session of the “Inclusive Financial Transformation” conference. The product is a mid-interest unsecured loan provided by financial companies based on their own credit assessments, intended to ease the financial difficulties of mid- and low-credit borrowers. Six savings banks—KB Savings Bank, OK Savings Bank, SBI Savings Bank, Shinhan Savings Bank, Yegaram Savings Bank, and Korea Investment Savings Bank—have introduced the product. In the second half of the year, an additional 14 savings banks, as well as banks, card companies, and capital finance companies, are scheduled to launch similar mid-interest personal stabilization loan products.

Eligible borrowers are those with mid- to low credit scores ranked in the bottom 50% at the time of application. As of June 29, this means a NICE credit score of 889 or below, or a KCB credit score of 875 or below. Specific criteria can be confirmed through each financial institution’s terms and conditions.

The maximum loan limit per borrower is 10 million won in total across all financial sectors. Financial companies will assign the final limit as the lower amount between the borrower’s remaining limit, as determined via the Korea Credit Information Services inquiry, and the amount determined through their own internal review process.

For the institutions participating in the first launch, the applicable interest rates range from 5.9% to 15.27% per annum. The final rate is determined based on the borrower’s creditworthiness and the financial company’s credit evaluation system. The Financial Services Commission explained that the maximum interest rate for this product has been set 1.24 percentage points lower than the previous maximum rate for mid-interest loans in order to lessen the interest burden for mid- and low-credit borrowers.

However, to receive the loan, borrowers must sign an agreement not to purchase a house for one year after the loan is executed or until the loan is fully repaid. This measure aims to prevent stabilization funds from being used for real estate speculation. If a borrower violates this agreement, the loan must be repaid immediately, and the individual will be restricted from accessing housing-related loans and mid-interest personal stabilization loans for the next three years.

Applications can be made via financial institution mobile applications, by phone, or by visiting a branch. Interest rate comparison and applications are also available through online loan comparison platforms such as Toss, KakaoPay, KakaoBank, Naver Pay, Finda, and BankSalad.

Kim Jinhong, Director General of the Financial Industry Bureau at the Financial Services Commission, stated, “The mid-interest personal stabilization loan is significant in that it is an unsecured loan product provided by private financial institutions based on their own credit. We urge financial institutions to continuously advance their credit evaluation systems so that borrowers can truly experience the benefits of lower interest rates.”

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