Hana expands loans for the working class

Hana Bank and Korea Exchange Bank employees offer financial consulting service to those who don’t have time to visit banks, at Wonkwang University in North Jeolla Province in this file photo. / Courtesy of Hana Financial Group

By Yoon Ja-young

Hana Bank and Korea Exchange Bank (KEB), two banking arms under Hana Financial Group, have offered 1.5 trillion won in loans tailored for the working class as of September.

They plan to increase the loans to 2 trillion won next year.

The money was provided in the form of “Saehuimang Holssi” (seed of new hope) loans or “Bakkueodrim” (switch) loans. The “Saehuimang Holssi” loan, which the local banks launched jointly, aims to lower the barriers for low-income households or people with poor credit ratings.

“Bakkueodrim” loans aim to help working-class people switch from non-bank lenders ― where the interest burden is huge ― to a bank loan at a lower interest rate.

Hana Bank and KEB, which plan to integrate soon, are leading the way with these loans. Hana Financial Group said the group had been continuing efforts to lessen the financial burden of the working class with its “happiness-sharing committee,” pondering ways to support these borrowers systematically.

Some of the benefits for the working class developed by the committee include offering up to a 1 percent interest rate cut for multicultural households, and medical and education expense support for those who borrow money through the “Saehuimang Holssi.”

For the most vulnerable households, Hana has been deducting 50 percent of the overdue interest. It has also been operating a bus which visits the working-class customers who want to apply for loans but aren’t capable of paying a visit to the bank.

Those seeking to switch to Hana’s lower-interest loans from private lenders can also request that a bank representative visit them to discuss the matter. This is part of the service and commitment that has helped Hana become the biggest loan provider for the working class.

“As an integrated Hana Bank, we plan to develop diverse services and programs tailored for the financially underprivileged households,” a Hana Financial Group spokesperson said.