Bank household loan total amount management → loan preferential interest rate reduction matrix
Deposit interest rate is 0%… Even if you put 100 million won, the interest is less than 70,000 won per month
[서울파이낸스 김희정 기자] In December of last year, the interest rate on bank household loans rose for four consecutive months. General credit loan interest rates rose the most in eight years and three months. Despite the record low standard interest rate (0.50% per year), a reverse driving phenomenon is occurring. This is because banks are locking down loan doors, such as reducing loan limits and raising interest rates, as financial authorities sternly warned of managing the total amount of household loans.
According to the statistics of the’weighted average interest rate of financial institutions for December 2020′ released by the Bank of Korea on the 29th, the average of the deposit bank’s loan interest rate (weighted average and new treatment amount) in December of last year increased by 0.03%p from November (2.71%). It was calculated at 2.74% per year. Due to the new coronavirus infection (Corona 19), the standard interest rate remained at a record low of 0.50%, falling to a record low for three months from June to August, but the trend continued afterwards.
Depending on the loan entity, the interest rate on corporate loans rose by 0.01%p from 2.72% to 2.73%, and the interest rate on household loans rose 0.07%p from 2.72% to 2.79%. Household loan interest rates have continued to rise for four consecutive months since last September. By type of household loan, mortgage loans, group loans, and guarantee loans rose 0.03%p, respectively, as interest rates increased. In particular, the general credit loan rate jumped 0.49%p (3.01→3.50%) in a month. This is the largest increase in 8 years and 3 months since September 2012 (0.66%p).
Song Jae-chang, head of the Bank of Korea’s Financial Statistics Team, said, “With the implementation of the credit loan management plan of the financial authorities in November, non-face-to-face loans increased significantly, led by high-credit borrowers, and credit loan rates fell.” With this sharp drop, interest rates have also risen significantly,” he said. He also said, “The impact of banks’ efforts to manage the total amount of household credit loans, including the reduction of preferential interest rates.”
In fact, last month, the five major banks, including Shinhan, KB Kookmin, Woori, Hana, and NH Nonghyup, proposed a reduction in preferential interest rates that would have the effect of raising the loan rate in order to manage the rapidly increasing credit loans. Woori Bank has lowered the preferential interest rate of up to 0.6% of the major office worker loans to 0.3%. The Nonghyup Bank has also removed the preferential interest rates for all-one employee loans and all-one negative loans from 0.3% to 0%.
Internet banks have also joined the march to reduce preferential interest rates. K-Bank raised its credit and negative bankbook loan rates to a minimum of 2.44% per annum and 2.89% per annum, respectively. It was raised by 0.2%p side by side. Kakao Bank raised the loan interest rates for high creditors of office workers and negative bankbook loans by 0.1% and 0.25%p, respectively.
Even with the efforts of banks, the unusual lending trend continues. As of the 7th, the credit balance of the five major banks was 134.101.5 billion won, an increase of 453.4 billion won in four business days this year. Earlier this month, as concerns over so-called’debt investment’ (investing through loans) increased as bank loans rose steeply, the Financial Supervisory Service convened a commercial bank to manage the rate of increase in household loans. Financial authorities believe that excessive increase in household loans can lead to overheating of stocks and real estate, and should take preemptive measures. It is said that there is a high possibility that the increase in the interest rate on loans will continue this month.
In this situation, the average of the deposit bank’s savings-related interest rates in December last year was 0.9%, the same as in November. Even if you put 100 million won in your bankbook, it is still difficult to receive even 70,000 won a month except for tax (15.4%). The difference between the deposit bank’s loan interest rate and the savings-related interest rate, that is, the loan-to-deposit margin, was 1.84%p, up 0.03%p from November (1.81%p). The total received interest rate and total loan interest rate based on the balance, not the new handling standards, were 0.75% and 2.80%, respectively, and the deposit margin was also calculated at 2.05%, 0.03%p higher than in November (2.02%).
Copyright © Seoul Finance Unauthorized reproduction and redistribution prohibited