Woori Bank limits the interest rate for credit loans to an annual rate of 7%... providing emergency loans of up to 10 million KRW to vulnerable groups.

Yuanta Bank will set a cap on personal credit loan interest rates starting next year and introduce emergency loan support measures aimed at financially disadvantaged groups. This move aims to significantly reduce the interest burden on loan users by limiting the previously maximum annual interest rate of around 12% to below 7%.

This countermeasure is part of the symbiotic finance project that UOB Financial Holdings has been promoting for a long time. It is particularly noteworthy that a maximum annual Interest Rate of 7% will be set for all personal credit loans, regardless of the customer's credit rating. Accordingly, borrowers who previously bore high rates close to 12% are also expecting to achieve significant Interest savings. The first applicable date is from January 2, 2025, and the cap provisions will automatically apply upon agreement renewal.

The upper limit regulations will also apply when applying for new loans. Starting from the first quarter of next year, customers who have held various financial products such as deposits, zero-sum savings, credit cards, and subscription savings for more than one year will be subject to a maximum interest rate limit of 7% when applying for credit loans. This move aims to provide substantial benefits to customers who mainly conduct transactions at Youli Bank.

The policy also includes support measures for financially disadvantaged groups that are relatively struggling in the economy. Specific groups such as youth, housewives, temporary workers, and people with disabilities will be provided with emergency living expense loans with a maximum limit of 10 million won, with the interest rate similarly capped at an annual interest rate of 7% or below. The repayment method will also adopt an unequal installment repayment method that allows for freely set monthly repayment amounts, achieving flexible repayment.

Debt adjustment for long-term defaulters is also one of the main contents. Among individuals holding loans of less than 10 million won, customers who have been in default for more than 6 years will be excluded from debt collection targets in the future, and the unpaid interest generated after default will also be waived. Woori Financial Savings Bank and its subsidiaries plan to offer overdue interest reduction benefits to multiple debtors or low-credit customers and initiate a debt reduction program that treats paid interest as principal repayment.

In addition, a loan product with a maximum scale of 20 million KRW will be launched to allow customers in the second financial sector to transfer loans to commercial banks. This move aims to enable customers who are steadily repaying high-interest loans to switch to products with lower Interest Rates. The product is also subject to a cap of an annual Interest Rate of 7%.

The significance of this inclusive financial policy lies in the fact that it goes beyond mere interest rate cuts and aims to promote structural improvements in the financial system. Youli Financial also plans to launch a mobile platform next year that integrates inclusive financial products from all its subsidiaries. These measures are expected to provide substantial assistance to groups with weak financial accessibility and help reduce financial blind spots.