Woori Bank to cut household loan rates by up to 0.7 percentage points
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The bank is expected to offer customers benefits worth as much as 205 billion won ($157.9 million) annually with the latest move and additional financial support for small business owners, small- and medium-sized enterprises and vulnerable social groups, Woori Bank said Thursday. The lender said it will provide details, including the timing, at a later date.
Woori Bank will soon lower interest rates for housing mortgage loans, jeonse loans, or loans for long-term housing rental deposits, and credit loans. The mortgage rates will decrease by up to 0.7 percentage points and if individuals or small and medium-sized companies pay overdue interest, the same amount will be offered to help them repay the principal, according to the bank.
In addition, the bank plans to launch a new loan product that offers a 1 percentage point interest rate cut and will also offer a 1 percent cut to the principal for low-income customers who faithfully repay their loans. This is far more benefits than those offered by Shinhan Bank and KB Kookmin Bank earlier.
Furthermore, this is the first measure taken by the bank since Yim Jong-ryong, new chairman of Woori Financial Group Inc. and the parent of the lender, took office.
“Woori Financial Group will continue to provide this kind of financial support going forward,” said Yim. Upon his inauguration, Yim established an organization dedicated for this effort through an organizational reshuffle. He said that this measure was taken with a focus on providing practical benefits to the public.
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