Business · Companies · 2 hrs ago
Shinhan Bank cuts rates on some mid-interest loans by 0.3 points
Shinhan Bank cut rates by 0.3 percentage points on certain mid-interest loans in South Korea.
The change took effect on October 16 and was announced on October 18.
It applies to customers whose NICE or KCB credit score falls in the lower half of the score range.
These loans are intended for people with medium or lower credit ratings, and the bank said the cut aims to ease their borrowing costs and expand lending.
The annual interest rate is capped at 6.9%, so the cut may not change the rate for borrowers whose calculated rate remains above that limit.
The same rules apply to eligible online loans, but customers must submit a new loan assessment application after the change took effect to receive the revised rate.
Shinhan Bank cut interest rates by 0.3 percentage points on some mid-interest loans for customers with lower credit scores.
The cut took effect on October 16 and was announced on October 18.
It applies to customers in the bottom 50% of external NICE or KCB credit scores.
The loans remain subject to an annual interest-rate cap of 6.9%.
The same rate rules apply to online personal loans, but borrowers must apply for a new loan review after the effective date.
- Who
- Shinhan Bank. The eligible borrowers are customers in the bottom 50% of NICE or KCB external credit scores.
- What
- The bank cut rates on eligible mid-interest loans by 0.3 percentage points. An annual cap of 6.9% remains in place.
- When
- The rate cut took effect on October 16, 2026, and was announced on October 18.
- Where
- South Korea.
- Why
- The bank said it aims to ease financial costs for customers with mid-to-low credit and expand the supply of private mid-interest loans.
This story does not have two clearly opposing sides.
Shinhan Bank’s 0.3-percentage-point rate cut took effect for eligible loans.
Shinhan Bank announced the rate cut.
- Rate reduction
- 0.3 percentage points
- Eligible credit scores
- Bottom 50% of NICE or KCB external scores
- Annual rate cap
- 6.9%
- Effective date
- October 16, 2026
- New applications
- Borrowers must submit a new loan review request after the effective date to receive the revised rate rules.