On June 9, the financial sector reported that Shinhan Bank has increased the preferential rate for its New Hope Loan installment repayment from 0.3 percentage points to 1.1 percentage points as of June 5. As a result, the new minimum interest rate for the New Hope Loan will be around 4% annually.
To further ease the repayment burden for borrowers, the maximum repayment period has been extended from 60 months to 84 months.
Additionally, since February, Shinhan Bank has been implementing the "New Hope Loan Circular Inclusive Finance Program," allowing customers to convert high-interest credit loans into a long-term installment repayment structure under the New Hope Loan. After the conversion, borrowers will benefit from a fixed interest rate of 6.9% and a loan term of up to 10 years.
Shinhan Bank is also preparing to launch a "Savings Bank Refinancing Loan" aimed at reducing financial costs for mid- to low-credit borrowers currently using savings bank credit loans. Since January, the bank has been operating a support program for low-credit individual business owners, allowing them to use excess interest burdens to repay the principal of their loans.
A Shinhan Bank official stated, "We are pursuing inclusive finance that provides practical help for long-term credit recovery, rather than just one-time support. We will continue to offer interest burden relief and improved repayment structures to help our customers establish a foundation for recovery."
* This article has been translated by AI.
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