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Rates for household loans inch down in April

Bank lending rates on new household loans inched down in April and interest rates paid by banks on new deposits also fell, central bank data showed Tuesday.

The average interest rates on fresh household loans extended by local banks came to 3.41 percent in April, down 0.02 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.

South Korea's household debt reached a record high of 1,359.7 trillion won ($1,214 billion) at the end of the first quarter, according to data compiled by the BOK.

The average interest rates on new mortgages remained unchanged at 3.21 percent in April, according to the BOK.

The interest rates on all new loans stood at 3.42 percent in April, down 0.06 percentage point from a month earlier. The rates on new corporate loans came to 3.42 percent in April, down 0.11 percentage point from the previous month.

The average rates paid by banks on fresh deposits came to 1.48 percent in April, down 0.01 percentage point from the previous month.

The gap between the interest rates paid to and by banks came to 1.94 percent in April, down from 1.99 percent in March. (Yonhap)

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