Even in the face of rising interest rates on loans this year, the proportion of variable interest rates among household loans at deposit banks increased to 79%.
The Bank of Korea (BOK) announced today that the proportion of variable interest rates among household loans at deposit banks in October was 79.3%, an increase of 11.2 percentage points from December last year.
The floating rate ratio was 81% in June, the highest level since January 2014, and then dropped slightly to 78% in September, but rose again to 79% in October.
The interest rate on household loans at deposit banks in October stood at 3.46% per annum, up 0.67 percentage points this year alone.
Many borrowers are opting for a variable rate, even when lending rates are rising and there are hints that a trending uptrend is coming.
This is analyzed because the floating rate is 3.4~4.9% compared to the fixed rate of 3.8~5.1% per annum, which is directly affected by the current rise in market interest rates.
