Household loan approaching 700 yen in July despite loan regulations… Highest all year round

The balance of household loans at commercial banks in July reached 700 trillion won, the highest this year. From last month, it was expected that the loan growth would slow down due to the tightening of regulations on the total debt-to-income ratio (DSR) by borrower.

According to data from the five major commercial banks, including KB Kookmin, Shinhan, Hana, Woori and Nonghyup on the 2nd, the balance of household loans at the end of this month was 695.308 trillion won. This is an increase of 6.08 trillion won (0.90%) from the previous month and the largest balance this year. The maximum household loan balance this year was 690,862.3 billion won, set in April.

The balance of household loans stood at 489,583.7 billion won, an increase of 3.823.7 trillion won (0.79%) from the previous month. The balance of the main loan in June increased only 0.13% (651.8 billion won) from the previous month, but it showed a sharp increase again in one month.

In the banking sector, the increase in the monthly payment in July, which is the off-season for moving, reflects a natural increase. In addition, there is an interpretation that the amount of each loan has increased due to the rise in housing prices, and there is also a demand for borrowing money for living with a house as collateral due to the prolonged novel coronavirus infection (COVID-19).

A bank official explained, “The loan amount per case may have increased in addition to the natural increase.” “The DSR has been strengthened since July, but there will also be demand that was executed in July after receiving a loan in advance.” Another bank official said, “The economic downturn is prolonged and the COVID-19 is not calming down, and there is also a demand for loans to be used for living expenses by using their own houses as collateral. ” he analyzed.

In particular, personal credit loans amounted to KRW 140,893.1 billion, an increase of KRW 1.863.7 trillion (1.34%) from the previous month, the steepest increase among household loans. It is believed that credit loans increased significantly following large IPOs such as Kakao Bank and Krafton.

A bank official explained, “The number of credit loans for subscription to public offering stocks has increased significantly.