IBK eases mortgage, jeonse loan restrictions as household lending rules loosen

Industrial Bank of Korea has lifted some of its loan restrictions after the government eased household lending volume regulations following its Aug. 13 policy measures.

The bank resumed accepting mortgage and jeonse loan applications through loan brokers Tuesday, according to the financial industry. Loans processed through brokers will be subject to monthly caps going forward.

The bank also resumed offering variable-rate mortgages and refinancing services that allow borrowers to transfer loans from other banks to Industrial Bank of Korea.

"We have eased some of the restrictions that had been in place," a bank official said, adding that the only household lending restriction still in effect is the suspension of MCI (mortgage credit insurance) and MCG (mortgage credit guarantee) coverage for home-backed loans.

Industrial Bank of Korea had previously restricted certain mortgage and jeonse loan products to manage overall household lending volume. With the government's Aug. 13 measures loosening those requirements, the bank partially lifted the restrictions Tuesday.