Shinhan Bank widens preferential rate on Saehimangholssi loans to 1.1 pct pts

Shinhan Bank announced Tuesday it will expand the preferential interest rate on installment repayments for its Saehimangholssi loan — a product targeting low-income borrowers — from 0.3 percentage points to 1.1 percentage points, in line with the government's inclusive finance policy for financially vulnerable households.

The measure, which took effect June 5, is designed to ease the interest burden on financially vulnerable customers and support stable repayment. Alongside the rate expansion, Shinhan Bank extended the maximum installment repayment period for the loan from 60 months to 84 months, reducing monthly payment obligations. New loan rates under the product will start from the low 4 percent range annually, though the exact rate varies by customer, delivering a tangible reduction in borrowing costs for low-income customers.

Since February, the bank has also been running the "Saehimangholssi Virtuous Cycle Inclusive Finance Program," which allows customers to convert existing high-interest credit loans into the long-term installment structure of the Saehimangholssi loan. After conversion, customers receive a fixed annual rate of 6.9 percent and a repayment period of up to 10 years, helping them pay down debt on a stable schedule.

"We are orienting our inclusive finance efforts so that borrowers can achieve genuine credit recovery over the long term, not just through one-off support," a Shinhan Bank official said. "Going forward, we will continue to provide multifaceted support — including further easing of interest burdens and more sophisticated repayment structures — to help customers rebuild their financial footing."

Meanwhile, Shinhan Bank is preparing to launch a dedicated refinancing loan product aimed at reducing borrowing costs for low- and mid-credit customers currently holding savings bank credit loans. Since January, the bank has also been operating a program for low-credit self-employed customers that applies excess interest payments toward reducing loan principal.