Shinhan Bank launches refinancing loan to ease burden on high-rate savings bank borrowers

Shinhan Bank on Tuesday launched "Shinhan Mutual Refinancing Loan 2," an inclusive finance product designed to reduce the financial burden on mid- to low-credit customers who hold high-interest credit loans from savings banks.

The product is a dedicated refinancing loan under Shinhan Financial Group's ongoing Bring Up & Value Up project, expanding eligibility from Shinhan Savings Bank customers to borrowers across all savings banks nationwide.

Shinhan Financial Group launched the project in September 2024 through collaboration among its affiliates to help mid-credit savings bank customers improve their credit standing and reduce financing costs. Since the original mutual refinancing loan was introduced, Shinhan Bank has supported a total of 1,670 refinancing cases worth 29.6 billion won ($19.1 million) through the end of June.

Eligible applicants are wage earners with at least one year of continuous employment and an annual income of at least 20 million won. The loan refinances credit loans originally taken out at savings banks. The maximum loan amount is 100 million won, within the principal and interest range of the loan being refinanced. The maximum annual interest rate is 9.8 percent, and loan terms range from 36 to 120 months. Repayment follows an equal principal-and-interest installment structure.

Applications are accepted both at branches and through non-face-to-face channels. The non-face-to-face option is available exclusively through the loan transfer system, meaning customers with credit loans at any of the 18 savings banks currently participating in that system — as of June — can refinance remotely.

Branch applications opened Tuesday, while the bank's Shinhan Super SOL app will begin accepting applications July 7.

"We sought to extend the mutual refinancing support — previously available only to Shinhan Savings Bank customers — to borrowers across all savings banks, giving more customers the option to lower their financing costs," a Shinhan Bank official said. "We will continue to pursue effective inclusive finance initiatives that support credit improvement and expand financial access for mid- to low-credit customers."