Expansion of cap system to alleviate interest rates for vulnerable groups
Also launched is a living expenses loan product for those with low to medium credit.
[헤럴드경제=김은희 기자] Woori Bank announced on the 22nd that starting from the 23rd, it will expand the interest rate upper limit (cap) system, which limits the interest rate on personal credit loans to less than 7% per year, to include new loans.
We are also launching a new product called ‘Our WON Dream Living Expenses Loan’ to ease the financial burden of those with low to medium credit.
The implementation of this system and product launch is part of the inclusive finance expansion policy of the future shared growth project being promoted by Woori Financial Group. It was designed to support vulnerable groups whose financial burden has increased due to the economic slowdown and rising prices of living.
Woori Bank is expanding the scope of application of the 7% interest rate cap system, which has been operated for customers who extend or renegotiate personal credit loans, to new personal credit loans. Accordingly, when a consumer who has transacted with Woori Bank for deposits, credit cards, or subscription savings for more than one year receives a new personal credit loan, the loan interest rate is limited to no more than 7% per year for a maximum of one year and at most once. It is expected that interest rate cap benefits will be granted to more than 10,000 loans.
The newly introduced Woori One Dream Living Expenses Loan is a product to support emergency living stabilization funds for low-income and vulnerable groups.
It targets wage earners, non-wage workers (freelancers), housewives, etc. with an annual income of 25 million won or less, and is characterized by increasing accessibility by expanding the credit band (CB) of those eligible to subscribe to the product to 8 grades by using alternative credit evaluation based on various information such as finance, telecommunications, and small payments.
In particular, it was designed so that customers who lack proof of income can also apply. ▷ Loans available up to 10 million won ▷ The lowest interest rate is applied from the late 4% range per year ▷ The highest interest rate is limited to 7% per year. In addition, the repayment burden was significantly reduced by introducing an installment repayment structure of up to 10 years, including a 3-year grace period. Preferential interest rates are also provided to those eligible for inclusive finance, including young people, the elderly, the disabled, and those receiving basic livelihood security.
A Woori Bank official said, “We will expand various supports so that finance can serve as a social safety net.”
ehkim@heraldcorp.com
