Trapped and Desperate: The Plight of Loan Refugees Denied a Second Chance
- As commercial banks tighten their lending reins, the demand is moving to internet-only banks, local banks, and insurance companies, creating a balloon effect.
- According to the financial sector, Hanwha Life Insurance closed its application for this month’s housing loan early.
- The early sell-out of insurance company loans is very unusual.
Loan Refugees Struggle as Lending Doors Close
As commercial banks tighten their lending reins, the demand is moving to internet-only banks, local banks, and insurance companies, creating a balloon effect. Inquiries about housing mortgage loans are skyrocketing at financial institutions that have relatively fewer lending doors, but these too are locking their doors one by one, making it inevitable for ‘loan refugees’ to emerge.
According to the financial sector, Hanwha Life Insurance closed its application for this month’s housing loan early. This is because the housing loan volume was exhausted in just four business days until the 5th. Hanwha Life Insurance is currently accepting applications for housing loan volumes starting from October.
The early sell-out of insurance company loans is very unusual. It is analyzed that demand has shifted to insurance companies as major commercial banks have raised their lending thresholds to curb household loans. Currently, the lower end of insurance company housing loan interest rates is in the mid-3% range, lower than commercial banks. In particular, Hanwha Life Insurance has the second largest housing loan amount in the insurance industry after Samsung Life Insurance.
Internet banks where the so-called ‘open run’ phenomenon has occurred are also imposing loan restriction measures. Kakao Bank and K Bank have limited the target of housing purchase loans to ‘non-homeowners’ since the beginning of this month. However, K Bank has made it possible to provide loans to actual homebuyers who are switching homes if they promise to sell their existing homes.
Local banks, which are experiencing a surge in demand for housing loans, are also starting to watch the financial authorities. BNK Busan Bank and BNK Gyeongnam Bank have raised their housing loan interest rates by 0.4% and 0.2%, respectively, since the end of last month. Mr. A, in his 40s, who is moving next month, said, “I was planning to sell my existing home and move, but there are many cases where the loans I have looked into are blocked, so actual demanders are suffering.”
Reporter Kim Jun-hee zunii@kmib.co.kr
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