Treasury bonds and lending rates rise to reality… Household loan interest rate’Mugwort’ for 5 months

Input 2021.02.26 12:00

Mid- and long-term government bond-linked Bogeumjari Loan rose 0.10%p in January
The lowest loan interest rate for large corporations… Increased loans for excellent companies

Last month, household loan interest rates rose for five consecutive months. This is because the interest rate on mortgage loans rose as the interest rate on the Bogeumjari loan, which is linked to the interest rate of mid- to long-term government bonds, rose. On the other hand, the interest rate on corporate loans, which uses the short-term interest rate as an indicator, declined due to the impact of the interest rate on loans to large corporations at a record low.

According to the’weighted average interest rate for financial institutions in January 2021′ announced by the Bank of Korea on the 26th, the household loan interest rate based on the amount of new treatment last month rose 0.04 percentage points (p) from the previous month to 2.83%. Household loan interest rates rose for five consecutive months after a low of last August (2.55%).

Home mortgage loans are driving the rise in interest rates on household loans. The mortgage interest rate has risen by 0.04%p to 0.63% last month, which has also risen for the fifth month since August last year. Last month, the group (0.14%p) and guaranteed loan interest rates (0.01%p) were raised and the Bogeumjari loan interest rate increased.

The interest rate of the Bogeumjari Loan, a policy funded mortgage loan provided by Korea Housing Finance Corporation, is linked to the interest rate of mid- to long-term government bonds. As the mid- to long-term treasury bond rate rose amid the recent rise in US Treasury yields and the movement to expand government fiscal spending, the home loan rate jumped. The January Bogeumjari Loan interest rate rose 0.10%p MoM.

On the other hand, the general credit loan interest rate (3.46%) fell 0.04%p. Short-term market interest rates linked to credit loan rates have fallen, and some banks have increased the proportion of high-credit borrowers.

The interest rate on corporate loans fell 0.04%p to 2.69% last month. The short-term market interest rate fell and the lending rate of large corporations (2.41%) fell 0.10%, reaching a record low. SME loan interest rates (2.90%) rose by 0.01%p as some banks increased the proportion of high-interest loans.