Commercial Banks Reduce Credit Loan Limits to 100 Million Won: Strategies for Borrowers Amid Tighter Household Debt Regulations

Major commercial banks have uniformly lowered the maximum limit for personal credit loans to 100 million won to manage household debt. Even amid a freeze in interest rates, a full-scale 'tightening of loans' has begun in earnest, alarming consumers planning to secure funds.

Why Reduce the Credit Loan Limit to 100 Million Won Now?

Recently, financial authorities have warned of the dangers of surging household debt and ordered commercial banks to strictly manage loans. Consequently, major banks have taken the drastic measure of slashing the maximum limit for personal credit loans from the previous 150-200 million won range to 100 million won.

• Strengthening Household Debt Suppression: As mortgage loans continue to rise, the intention is to fundamentally block credit loans from being used as a workaround.
• Proactive Response to Phase 2 of Stress DSR: This is interpreted as proactive risk management ahead of the upcoming tightening of the Debt Service Ratio (DSR) regulations scheduled for the second half of the year.
• Managing Delinquency Rates: This is a soundness management measure to reduce the risk of insolvency of marginal borrowers due to prolonged high interest rates.

Overdraft Accounts Affected... What Should Borrowers Do?

This limit reduction applies equally to general credit loans and 'overdraft accounts (limit loans)'. Borrowers who already have loans exceeding 100 million won are highly likely to be asked to reduce their limits or repay a portion of the principal upon maturity extension. Borrowers must check their renewal dates in advance and establish alternative funding sources, such as secondary financial institutions, or prepare installment repayment plans beforehand.

💡 Frequently Asked Questions (FAQ)

Q. Do people who already borrowed more than 100 million won have to repay immediately?

No. The limit is maintained until the maturity date of the existing loan. However, when applying for an extension, the limit may be reduced to 100 million won depending on the screening process. Therefore, it is safe to discuss the repayment schedule with your branch 1-2 months before maturity.

Q. Is the limit 100 million won even with a high credit score or a professional job?

Yes, most commercial banks are setting a policy to limit the 'maximum limit per individual' itself to 100 million won, regardless of job category or credit score. However, for exceptional agreement loans or specific corporate-linked products, the criteria may differ, so checking with your primary bank is essential.