NH Nonghyup Bank is set to resume offering variable rate mortgage loans. This marks the first instance of a loan regulation easing in the banking sector following the government's decision to relax household loan limits this year.
According to the financial sector on August 19, NH Nonghyup Bank will restart new issuances of its 'NH Mortgage Loan' product starting August 20. The bank had restricted new issuances of this product since June 1 to manage household loan limits.
The resumption of loan offerings is interpreted as a response to the stabilization of loan growth due to strengthened household loan management, which has allowed for some capacity to issue new loans.
Additionally, the Financial Services Commission announced on August 13 that it would double the target increase rate for household debt this year from 1.5% to 3.0%. As a result, the entire financial sector is expected to gain approximately 30 trillion won in additional lending capacity this year.
On the same day, financial authorities convened representatives from the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) for a practical meeting to adjust household loan limits by bank. It is anticipated that the meeting will share first-half household loan performance and current status of balance loans while gathering industry feedback. Depending on the outcomes of this meeting, other banks may also ease existing loan regulations.
* This article has been translated by AI.
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