▲ KB Kookmin Bank’s new building (Photo courtesy of KB Kookmin Bank)
KB Kookmin Bank has started to tighten household loans by limiting the household loan limit by branch since October. As the growth rate of household loans this year approached the 5-6% level recommended by the financial authorities, it seems that these measures were taken to manage the total amount of loans.
KB Kookmin Bank announced on the 6th that it will manage new household loans by branch starting this month. Each branch sets a maximum loanable amount within a month, and when it exceeds the limit, the branch’s household loan is suspended.
However, in order to protect the common people and end-users, group loans (intermediate payments and resident loans), construction Bogeumjari loans, and fund loans were excluded from the limit limit for each branch.
Prior to KB Kookmin Bank, Woori Bank set a monthly loan limit of 500 million won to several billion won per branch since last month and started managing the total amount of loans.
In addition to applying the loan limit for each branch, KB Kookmin Bank has significantly reduced the household loan limit, such as mortgage loans and Jeonse loan, since last month. The standard for operating the total debt-to-income ratio (DSR) for main loans has been strengthened from ‘within 100-120%’ to ‘within 70%’. In addition, the loan limit was reduced by limiting the subscription to mortgage credit insurance (MCI) and mortgage credit guarantee (MCG).
In addition, the limit of the Jeonse fund loan was limited to ‘within the range of the increase in the rental deposit (jeonset value)’, and the collateral standard for the remaining loan among group loans is also from ‘KB market price or appraised value’ to ‘the lowest among pre-sale price, KB market price, and assessed value’. changed to ‘amount’.
KB Kookmin Bank’s strong loan limit management is because the growth rate of household loans is within the control range of the financial authorities (5-6%). KB Kookmin Bank’s increase in household loans this year compared to the end of last year recorded 3.6% at the end of August, then rose rapidly to 4.9% at the end of September, just a month later, and finally reached 5.0% on the 5th of this month.