Shinhan Bank said Wednesday it will extend for one year, starting Wednesday, an interest rate reduction program for customers carrying high-rate household loans — a measure first introduced last year as part of its "Help-up & Value-up Project."
The Help-up & Value-up Project is a shared-growth finance initiative launched last year by Shinhan Financial Group to help customers achieve financial independence and build asset value, supporting a sustainable financial lifestyle.
Since July last year, the bank has lowered the rate on household loans carrying interest above 9.8 percent to 9.8 percent, easing the interest burden on affected customers. The extension continues that relief for borrowers still holding high-rate household loans.
Customers eligible for the program are those who, as of July 2026, hold household loans with rates exceeding 9.8 percent and have at least three months remaining on their loan term. Qualifying customers will have their rates automatically reduced to 9.8 percent — no application required.
The rate reduction applies through the loan's maturity date, with a maximum support period of one year for loans with more than one year remaining. The program is expected to cover 28,411 loans with an outstanding balance of around 311.4 billion won ($226 million). Customers whose loans fall into arrears during the support period must pay both the original loan interest and any overdue interest.
"We extended the rate reduction support to continue easing the financial burden on customers with high-rate household loans," a Shinhan Bank official said. "We will keep pursuing inclusive finance in ways that customers can genuinely feel."
Meanwhile, Shinhan Bank on Friday launched "Super SOL Mid-Rate Loan," a new product designed to improve financial access and reduce interest costs for customers with low-to-mid credit scores. The loan targets customers in the bottom 50 percent of external credit scores from NICE or KCB, offering up to 20 million won per person. The bank applied its in-house "alternative credit scoring model for low-income borrowers" to extend coverage to customers with limited credit histories, such as young adults entering the workforce and homemakers. The loan carries a fixed annual rate of 5.5 to 6.9 percent with a maximum term of 36 months.
won@heraldcorp.com
