최저신용자 특례보증Article input: September 4, 2023 10:58
Last modified: September 4, 2023 14:50
[Seoul = Newspim] Reporter Jeong Gwang-yeon = The ‘special guarantee for the lowest credit borrowers (lowest credit special exception)’, which the financial authorities are promoting as part of strengthening financial support for low-income individuals, is suffering from a supply chain shortage even after a year since its launch. It is pointed out that the burden on the banking sector due to high delinquency rates is the biggest obstacle. It is pointed out that institutional supplementation commensurate with the purpose of win-win finance is needed before encouraging voluntary participation.
According to the financial authorities and the Korea Inclusive Finance Agency (Seoul Finance Agency), as of the 4th, there are only four companies that handle the lowest credit special treatment, including Gwangju Bank, Jeonbuk Bank, Welcome Savings Bank, and DB Savings Bank (Seoul residents only).
The minimum credit special treatment, which was first introduced in October last year, is for people with a credit rating of less than 10% and an annual income of 45 million won or less who have experienced rejection of an application for Sunshine Loan 15, a representative financial support fund for low-income people. This is the current government’s representative policy for vulnerable groups excluded from the existing financial protection network.
You can borrow up to 10 million won and pay in installments for up to 6 years (1 year grace period + 5 years repayment). The interest rate is 15.9%, but upon faithful repayment, it is reduced by 3 percentage points (p) per year if the loan period is 3 years, and by 1.5 percentage points (p) per year if the loan period is 5 years.
The financial authorities introduced the minimum credit special treatment for two banks, Gwangju Bank and Jeonbuk Bank, in October last year, and in the fourth quarter of the same year, four banks, including Welcome Savings, Hana Savings, DB Savings, and NH Savings Bank, and Shinhan Savings and Woori Financial Savings in the first half of this year. ･It was announced that it would expand five locations, including BNK Savings, IBK Savings, and KB Savings Bank.
However, as each financial company postponed the launch due to internal circumstances, even a year later, only 4 banks are handling it (NH Savings Bank stopped handling it due to exhaustion of its limit).
Due to a lack of branches, the funny thing is that the limit for each bank is used up in one day upon launch. This defeats the purpose of the policy of providing customized financial support for the vulnerable.
Starting with Woori Financial Savings Bank around the middle of this month, major banks such as Hana and Shinhan Savings Bank in October and KB Savings Bank in December are expected to gain some breathing room as they begin to treat the lowest credit special treatment, but the participation of various banks is needed to secure a more stable supply chain. It is pointed out that is necessary.
Accordingly, Seogeumwon and others explained that they are continuing discussions with other banks, but the situation is not easy. This is because the minimum credit special treatment itself is not compulsory and the financial authorities are responsible for all losses, but adverse effects from a business perspective are inevitable.
The biggest reason why banks feel burdened by the minimum credit special treatment is the delinquency rate.
This is because the delinquency rate is overwhelmingly high as it targets people with low credit ratings, which has a negative impact on the overall soundness of the bank. The minimum credit special delinquency rate is not disclosed separately, but the banking industry estimates it to be over 10%.
In particular, in the case of savings banks that mainly deal with minimum credit special provisions, the delinquency rate in the first half of this year reached 5.33%, an increase of 1.92 percentage points (p) compared to the end of last year, making it difficult to expand the minimum credit special provisions with already high delinquency rates.
In order to strengthen financial support for low-income individuals next year, the financial authorities plan to allocate a budget of 56 billion won for special credit for low-income individuals and supply 280 billion won annually. However, it is pointed out that for this to happen, additional policies to encourage participation in the banking sector are needed.
An official from a commercial bank said, “As the government emphasizes strengthening soundness, delinquency rate management is more important than anything else for banks. At this time, it is not easy to handle products with a high risk of delinquency,” adding, “Banks are already providing products to support the common people.” “There is a lot to operate. I think participation will increase because there is a factor that lowers the burden,” he said.
peterbreak22@newspim.com
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