HF Cuts Default Rates for Bogeumjari Loans

- The rate cut will ease the burden on borrowers and support them in achieving financial stability

Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) said on November 20, 2017, that it will cut the default rates for Bogeumjari Loans on the 20th.

Default interests are calculated at the base interest rate plus the default rate. HF is going to lower the default rate from the current range of 4-5% to 2-4%.

The rate cut came after the government's October 24 announcement on comprehensive policy measures to address excessive household debt in order to put the policy measures into action and ease the debt burden on borrowers, helping them get their finances back on track.

< Change in HF's Default Interests>

An HF official said, ”We have lowered our default rates three times since 2011 to support borrowers suffering financial difficulties and, at the same time, to respond to the nation's rising household  debt. We will continue to improve our financing schemes by reflecting the voices of the financially vulnerable and meeting the needs of our society.”

To lower the burden of borrowers, HF offers other debt adjustment services, including a reduction in penalties on delayed debt payments, a deferral in principal payments, and support for low-income groups.