Photo = Getty Image Bank
It was found that the interest rate on credit loans for professional workers, such as doctors and lawyers at commercial banks, was higher than that for general office workers. It is analyzed that the’interest rate reversal phenomenon’ occurred as the policy to suppress loans for high income and high creditors continued. It is pointed out that the government’s excessive market intervention is destroying the’common sense of finance’ in which loan interest rates are applied differentially according to creditworthiness.
Doctors and lawyers pay more interest
According to the banknote on the 9th, the minimum interest rate for loans for professional (doctors, lawyers, etc.) of the five major banks (Kookmin Shinhan Hana Woori Nonghyup) was higher than the minimum interest rate for loans exclusively for office workers. The minimum interest rates for professional loans from these banks ranged from 2.23 to 3.87% per year, and the minimum interest rates for employee loans were 1.92 to 2.89% per year.
Shinhan Bank’s minimum interest rate for professional loans is 2.61% per year, 0.7 percentage points higher than the minimum interest rate for employee loans (1.92% per year). The minimum interest rates for professional credit loans at Hana Bank and Woori Bank were 3.87% and 2.96% per year, respectively, different from the minimum interest rates for employee credit loans (2.75% and 2.53% per year, respectively). At Nonghyup Bank, the minimum interest rate for credit loans for both occupations was the same at 2.23% per year, and only at Kookmin Bank, the minimum interest rate for professional credit loans was 2.61% per year, slightly lower than the minimum interest rate for employee credit loans (2.89% per year).
It is pointed out that it is unusual for the interest rate on credit loans for professionals to increase in most cases. Banks have long guaranteed higher limits and lower interest rates for repayable professionals. However, in the second half of last year, the situation changed as the government regulated loans for high-income and high-credit users to capture the real estate market. The limit for professional credit loans, which was about 300 million to 500 million won per bank, has been lowered to 200 to 300 million won, and the minimum interest rate has risen overall. An official from a commercial bank said, “Because the announced minimum interest rate is not unconditionally applied to each individual, there may be differences when receiving actual loans,” he said. “It is true that the preferential conditions for superior customers have been remarkably reduced.”
Only the threshold for low and mid-credit users keeps lower
There are concerns that excessive lending regulations could distort the financial system based on credit ratings. Not only the preferential interest rate, but also the loan limit is decreasing sequentially from high-income and high-credit users. The limit of negative bankbooks (limit loans) for professionals and high income earners has recently been lowered to less than 50 million won. The loan limit that high-income people can receive is not much different from the policy loan limit that small self-employed people receive.
On the other hand, the financial threshold for low and mid-credit users continues to fall. Until next month, the deferment of the principal and interest on loans for ordinary people and self-employed people is expected to be extended for another six months. There are also claims to adjust the credit rating system for companies affected by the coronavirus, and a bill was proposed that aims to reduce the principal of credit loans from private banks to affected borrowers. The’Interest Restriction Act’, which limits the highest interest rate for lenders to 20% per year, is also set to take effect from the second half of this year.
Common sense in finance and credit rating system shaken
Some view it as an unavoidable measure considering the prolonged corona 19. However, many point out that the government is excessively intervening in the lending system of private banks to view only as’warm finance’. An official from a commercial bank said, “Banks have been making loans with limited financial resources in consideration of their credit rating and the possibility of collection, but if this system is shaken, the funds cannot be returned to where they are needed and recovery becomes difficult.” The possibility of economic recovery will also decrease.” Another bank executive said, “There is a policy that shakes the value of commercial banks.” It will be better.”
There were also concerns that the regulation on the total amount of loans could in fact be a’interest rate intervention’ for individual borrowers. Shin Seong-hwan, a professor of business administration at Hongik University, who served as president of the Institute of Finance, said, “As the government began to work on finance, domestic financial companies are gradually becoming vegetative and politicized.” The continuation is also a concern.”
Reporters Jeong So-ram/Kim Dae-hoon/Oh Hyun-ah [email protected]