Shinhan Bank cuts loan rates for lower-credit borrowers by 0.3 percentage points, keeps cap

Shinhan Bank has reduced rates on mid-interest unsecured loans for customers with mid-to-low credit scores by 0.3 percentage points. Customers in the bottom 50% of NICE and KCB credit scores are eligible, and the maximum loan rate remains 6.9% per year.

The bank subtracts 0.3 percentage points from each customer's calculated rate, then caps the final rate at 6.9% per year. The change covers unsecured loan products already subject to this cap, with the same criteria applying to remotely accessed unsecured loans.

A calculated annual rate of 6.8% becomes a final rate of 6.5%. By contrast, a calculated rate of 7.3% still exceeds the cap after falling to 7%, so the final annual rate remains unchanged at 6.9%.

The revised criteria apply to new loan assessment applications submitted after the effective date. Eligibility depends on submitting a new assessment application, rather than a blanket adjustment to existing loans.

Shinhan Bank made the additional rate cut to ease interest burdens on customers with mid-to-low credit scores and expand private-sector mid-interest lending.