Consumers about to move into the 'DAH Bangbae' apartment complex in Seoul's Seocho-gu are facing a fierce competition among major commercial banks, which are expanding collective loan limits and lowering interest rates. The five major banks have tripled the combined limit for remaining principal loans for DAH Bangbae from 500 billion won to 1.55 trillion won, while Shinhan Bank and NH Nonghyup Bank have lowered their loan interest rates by 0.06%p and 0.1%p respectively. The easing of household loan aggregate regulations and the exclusion of collective loans by financial authorities are further accelerating the loan expansion competition among banks. Banks see this as an opportunity to secure high-quality assets, and consumers can take advantage of this opportunity to raise funds for home purchases at favorable interest rates.
