Shinhan Bank launches ultra-low-rate emergency loan for basic pension recipients

Shinhan Bank said Monday it has launched the "Shinhan Basic Pension Emergency Loan," designed to ease the financial burden on senior customers who receive their basic pension payments through the bank.

The product is available to customers who receive their basic pension through Shinhan Bank and operates as an overdraft facility with a single credit limit of 500,000 won ($324). The loan term is three years, with an annual interest rate of 0.1%. The product will be offered up to a total of 100,000 accounts.

The loan was developed in line with the bank's shared-growth finance principles, which aim to expand support for financially vulnerable groups and strengthen the practical impact of inclusive finance. Shinhan Bank said the ultra-low-rate emergency loan is intended to give basic pension recipients a stable way to handle sudden, unexpected living expenses.

To mark the launch, Shinhan Bank will run a promotional event from Monday through Sept. 30, offering two Mega MGC Coffee mobile coupons to each of the first 5,000 customers who use the product.

"The 'Shinhan Basic Pension Emergency Loan' is an inclusive finance product in the true Shinhan spirit, created to support senior customers facing urgent everyday funding needs," a Shinhan Bank official said. "We will continue to expand financial support that provides real, practical help to financially vulnerable groups."

Meanwhile, Shinhan Bank launched the "Shinhan SOL Mate Time Deposit" in February, targeting basic pension recipients with preferential interest rates of up to 0.2 percentage points above the standard rate, for a maximum annual yield of 3.1%. That product sold out and was also developed as a tailored offering for senior customers' financial stability and asset building under the bank's inclusive finance initiative.