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Rates for household loans inch up in December

Bank lending rates on new household loans edged up in December while interest rates paid by banks on new deposits also increased, central bank data showed Thursday.

The average interest rates on fresh household loans extended by local banks came to 3.29 percent last month, up 0.09 percentage point from the previous month, according to the Bank of Korea.

(Yonhap)
(Yonhap)

The BOK data came amid South Korea's efforts to tackle rising household debt. The country's overall household debt reached a record high of 1,295.8 trillion won ($1.1 trillion) as of end-September, according to the BOK.

The average interest rates on new mortgages came to 3.13 percent in December, up 0.09 percentage point from a month earlier, according to the BOK.

The average interest rates on all new loans stood at 3.44 percent in December, up 0.08 percentage point from a month earlier.

The rates on new corporate loans came to 3.54 percent, up 0.09 percentage point from the previous month.

The average rates paid by banks on fresh deposits gained 0.05 percentage point to 1.56 percent over the cited period. The gap between the interest rates paid to and by banks came to 1.88 percent in December, up from 1.85 percent in November. (Yonhap)

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