Credit loan 4%, main loan 3% interest rate ↑… Aftermath of base rate hike and preferential rate reduction

[뉴스토마토 용윤신 기자] Household loan interest rates rose for the fourth consecutive month last month. In particular, in the aftermath of the base rate hike and reduction in preferential rates in banks, the interest rates on credit loans and household loans exceeded 4% and 3%, respectively.

According to the ‘weighted average interest rate for financial institutions in September 2021’ announced by the Bank of Korea on the 29th, the total household loan interest rate (based on the weighted average and new handling amount) of deposit banks last month stood at 3.18%, up 0.08 percentage points from the previous month.

This is the highest level in two years and three months since 3.25% in June 2019. The household loan interest rate fell slightly in May and then turned upward in June, and has continued to increase for four consecutive months until last month.

As for the household loan interest rate, the index interest rate rose overall and banks reduced the preferential rate, driving the rise in general credit and home mortgage interest rates.

In particular, the interest rate on general credit loans jumped 0.18 percentage points from 3.97% to 4.15% per annum, rising to the 4% level. After showing an increase for five consecutive months, it reached the highest point in two years and three months since June 2019 (4.23%).

In addition, the interest rate on home mortgage loans rose 0.13 percentage points from the previous month to 3.01 percent per annum for four consecutive months. This is the highest level in two years and six months since March 2019 (3.04%).

Song Jae-chang, head of the financial statistics team at the BOK’s Economic Statistics Bureau, said, “In general, the main reason for the increase in household loan interest rates last month is that index interest rates such as CD rates and bank bond rates rose, and banks lowered preferential rates to manage household loans. It had an impact,” he explained.

The corporate loan interest rate (2.88% per annum) rose 0.10 percentage point from the previous month. The interest rate on loans to large corporations stood at 2.64%, up 0.08 percentage points from the previous month. The interest rate on SME loans stood at 3.05 percent, up 0.12 percentage point from the previous month.

The average interest rate for all new loans issued by deposit banks in August, which reflects both corporate and household loan rates, was 2.96%, up 0.09 percentage points from the previous month.

The savings bank’s deposit interest rate stood at 1.17% last month, 0.14% higher than the previous month (1.03%). This is due to the effect of rising market interest rates.

The deposit-to-deposit margin, which is the difference between the deposit bank loan interest rate and the savings-type deposit rate, increased by 0.05 percentage points in August (1.84%) to 1.79%.

The total interest rate based on the balance was calculated to be 0.69% per annum, up 0.02 percentage points from August. The total loan interest rate was 2.83%, up 0.04 percentage points from the previous month. The loan-to-deposit margin stood at 2.14%, up 0.02 percentage point from the previous month.

Meanwhile, in the case of loans from non-bank financial institutions, Mutual Savings Bank cut 0.37 percentage points to 9.54%, and Saemaeul Geumgo reduced 0.02 percentage points to 3.86%. Credit unions rose 0.02 percentage points to 3.87%, and mutual finance rose 0.08 percentage points to 3.86%.

By Yong Yoon-shin, staff reporter yonyon@etomato.com

ⓒ Delicious News Tomato, reprinted without permission – redistribution prohibited