Kakaobank lowers rates for mid-credit holders

Kakaobank, the country’s second internet-only bank, has cut interest rates for mid-range credit holders, the lender said on Wednesday, in the latest attempt to provide better services to customers with thin credit files.

The banking arm of mobile giant Kakao said it has slashed rates by up to 1.2 percentage points for mid-range credit holders. The bank also expanded a loan limit from 50 million won ($44,518) to 70 million won for them while halving the limit for high creditors to 50 million won.

Earlier this year, Kakaobank promised to expand loan services for low-and mid-credit holders, which is one of the important reasons the government granted operation for internet-only banks, including K Bank.

Kakaobank said its loans targeting mid-credit holders rose 108 percent from 56.7 billion won in the first four months in 2020 to 118 billion won during the same period in 2021.

(gypark@heraldcorp.com)