Household loans 5in one month 9surge by trillion won, banks cut back on unsecured lending
5Monthly household loans increased by more than trillion won in a single month, and have continued to rise rapidly, increasing by trillion won so far this month. Banks have successively introduced measures limiting applications through non-face-to-face channels and reducing the limits on unsecured loans and overdraft accounts.9so far this month, and have continued to rise rapidly, increasing by trillion won2.8so far this month, and unsecured lending is rising rapidly. Banks have successively introduced measures limiting applications through non-face-to-face channels and reducing the limits on unsecured loans and overdraft accounts.
5Monthly household loans increased by more than trillion won in a single month.9This figure is directly linked to the expansion of individual leverage.
Since the beginning of this month, household loans across the banking sector have already increased by 2.8trillion won. Over the same period, the volume of unsecured loans surged by 1.6trillion won.
Banks are tightening their management of unsecured loans. Measures limiting non-face-to-face applications on a daily basis will be implemented.
KB Kookmin Bank 6month 16will limit the credit loan amount from the day onward to 1hundred million won and the overdraft account limit to 5,000ten thousand won.
Shinhan Bank 6month 15announced that it would limit daily applications for non-face-to-face credit loans from the day onward. This is a measure to reduce the concentration of loan applications through non-face-to-face channels.
Hana Bank has reduced the credit loan limit for high-salaried borrowers to a maximum of 1hundred million won. Eligibility criteria and detailed procedures follow the guidance provided by each bank.
Several banks are introducing reductions in overdraft account limits and restrictions on non-face-to-face applications at the same time. The timing and scope of the measures differ by bank.
Reports continue to show that individuals’ outstanding credit loan balances are rising rapidly, regardless of changes in interest rates or policy. Changes to lending practices and limits are likely to be expanded sequentially for the time being.