KakaoBank Launches Balance Payment Loan...Up to 1 Billion Won, 40-Year Maturity

Entire Loan Process Available via Mobile Devices
Full Waiver of Prepayment Penalties

KakaoBank announced on the 16th that it has launched a "balance payment loan" for customers scheduled to move into newly constructed apartment complexes.

The loan is available to buyers of newly built apartments designated by KakaoBank. Eligible customers can use the KakaoBank application to check loan limits and interest rates, as well as to apply for and execute the loan—all processes can be completed on a mobile device.

The maximum loan amount is 1 billion won, within the limits imposed by the relevant regulations such as the Loan-to-Value (LTV) ratio and the Debt Service Ratio (DSR). The loan term can be up to 40 years. Borrowers can choose between equal principal repayment and equal principal and interest repayment options.

The entire prepayment penalty is also waived. Since the launch of its mortgage loan product in 2022, KakaoBank has not charged any fees for early repayment of mortgage loans. Whether this exemption policy is extended will be decided every six months, taking into account funding operations and loss costs.

KakaoBank plans to review the possibility of lowering interest rates by comprehensively reflecting market rates about one month before the move-in period begins. The company has also established processes that allow customers who have already entered into loan agreements to benefit retroactively from reduced rates, should they be implemented.

KakaoBank assists customers with registration procedures through a partnership with a law firm specializing in collective registrations. Required documents, such as the sales contract, are collected in person by an affiliated credit information company, which then delivers them to the law firm. The law firm partner is responsible for filing the acquisition tax and completing the registration process.

A KakaoBank representative stated, "Balance payment loans require customers to complete multiple procedures in a short period, in line with their move-in schedule, making this a burdensome product. We will continue to improve our products and services so that customers can access the residential financial services they need more easily and conveniently."

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