As household debt borrowed from banks first exceeded KRW 1,000 trillion at the end of last month, the interest rate on household loans at banks is gradually rising.
In a situation where household debts exploded last year due to the craze for home purchases, stock investment, and the aftermath of Corona 19, not only the interest rates on credit loans in banknotes but also mortgage interest rates are showing a trend to rebound. It seems to increase.
According to the financial sector, as of the 11th, four major commercial banks, including KB Kookmin, Shinhan, Hana, and Woori, loan interest rates of 1st grade are 2.61~3.68% per year.
Compared to 1.99 to 3.51% at the end of July last year, when the ‘1% level’ credit loan rate appeared, the lower end has increased by 0.62 percentage points.
The interest rate for mortgage loans is also on the rise, and the interest rate for mortgage loans on the 11th of the four major banks is 2.52~4.04% per year.
The lowest interest rate rose 0.27 percentage points from the end of July last year, which was the year-round low of last year.
It is analyzed that the reason why banks’ interest rates on household loans are rising is that the cost of financing by banks has increased, such as rising interest rates on bank bonds, and the fact that banks cut preferential interest rates due to tightening restrictions on loans by financial authorities.
Household loan interest rates are likely to continue rising for the time being due to economic recovery and inflation.
Experts feared that a rise in loan interest rates amid a surge in household debt would put a burden on our economy.
Professor Kim So-young of the Department of Economics at Seoul National University said, “The household debt of the bank has already exceeded 1,000 trillion won, but it is expected that the scale of household debt will continue to increase due to the supply of liquidity due to COVID-19 and the like. “If interest rates continue to rise, household debt could become insolvent, so policies aimed at that area should be devised.”