‘Sunshine Loan 17’ cut interest rates… Support for loans in excess of 20% interest rate
Financial Services Commission Announces’Key Projects’
By Newsis
Published 2021-02-14 16:17:14
The financial authorities have reviewed the rate cut for’Sunshine Loan 17′ in line with the maximum rate cut in the second half of this year, and decided to temporarily supply loan products for loans with interest rates exceeding 20%.
On the 14th, the Financial Services Commission announced this year’s’Finance Consumer Countries’ Focused Tasks’ based on these details.
According to this, the Financial Services Commission is reviewing the cut in the Sunshine Loan 17 rate, taking into account the’interest burden reduction effect’ and the’low credit credit loan contraction effect’ as the highest interest rate was cut from 24% to 20% in early July. Sunshine Loan 17 is a high-interest-rate alternative product that was launched to prevent the lowest creditors from being pushed into high-interest loans and private loans, and an interest rate of 17.9% is applied.
In addition, incentives for interest rate cuts will be expanded to strengthen incentives for repayment. Currently, if three-year and five-year loans are faithfully repaid, they are reduced by 2.5 percentage points each year and 1 percentage point each year, and a plan to increase the rate cut by 0.5 percentage points is under discussion.
It is also discussing a plan to temporarily supply loan products for loans with interest rates exceeding 20%. It is a temporary special product for borrowers who use borrowers, such as lenders, whose maturity extension of existing loans has become difficult due to a cut in the highest interest rate.
A plan is under consideration to provide loans for repayment purposes up to a maximum of 20 million won to low-income and low-credit users who have been using high-interest rate loans more than 20% for one year or more or whose maturity is imminent within six months before the date of the maximum interest rate cut. As of March of last year, borrowers with a 20% excess loan amounted to 2392,000 (16 trillion won), and the average interest rate was 24%.