This photo, taken Aug. 1, 2022, shows bank officials providing consultations on loan programs to customers at a Hana Bank branch in Seoul. (Yonhap)
SEOUL, May 31 (Korea Bizwire) — The Financial Services Commission on Wednesday launched an Online One-stop Loan-Exchange Infrastructure program to assist consumers in exchanging their old credit loans for better conditions and benefits.
Loans eligible for the program include worker’s loans below 1 billion won (US$753,860) provided by 53 financial companies, credit lines, and other credit loans without surety or mortgage.
These loans can be transferred to an identical form.
Starting in July, loan-comparing platforms will provide information on all credit card loans, enabling consumers to switch to a different loan.
However, the program does not accept loans that are overdue or involved in a legal dispute, confiscation, or transaction ban.
The service is user-friendly.
Consumers can access the loan exchange service through a loan-comparing platform or a financial app to check the interest rate and repayment terms.
They can then input their income, employer information, and assets to search for new loans they are eligible for and determine whether they can switch to a loan with better terms.
After selecting a new loan, consumers will sign a loan contract using the financial company’s dedicated app.
Once the contract is signed, the previous loan will be automatically paid off through the loan-exchange system.
The service is available from 9 a.m. to 4 p.m. on weekdays and can be used without limitations.
Financial authorities also plan to collaborate with the banking sector to establish loan-exchange infrastructure this year for larger-scale mortgage loans.
H. M. Kang (hmkang@koreabizwire.com)
