Banks offer more lenient rates to civil servants and military personnel

A composite image of the head offices of the country’s four major commercial banks – KB Kookmin, Shinhan, Hana and Woori / Korea Times file

By Yi Whan-woo

Four major commercial banks – KB Kookmin, Shinhan, Hana and Woori – offer more lenient rates to civil servants and military personnel compared to other professions.

Banks consider annual salary and other eligibility requirements to determine loan interest rates.

In this regard, the lending rules of the four companies attract interest because there are other professions, such as doctors and lawyers, who generally earn higher salaries.

The result is based on the analysis of 36 loan programs offered by the four banks combined.

Regarding KB Kookmin Bank, rates ranged between 4.54 percent and 5.54 percent on credit loans for all civil servants except military personnel.

The bank sold a separate loan for NCOs and officers at rates from 4.68 percent to 5.58 percent. Those who had civilian military employment were also eligible for the loan.

In contrast, separate loans for doctors and lawyers were offered in a range from 5.04 percent to 6.44 percent.

Shinhan Bank offered the lowest credit rates – from 3.96 percent to 5.77 percent – ​​to military personnel.

Most professions in the civil service sector, including private school teachers, were able to take out loans in the range of 4.29 percent to 5.7 percent.

On the other hand, the rates were higher for police officers and tax officials.

The rates varied between 4.54 percent and 5.85 percent for police officers, and between 4.4 percent and 5.6 percent for tax officials.

Hana Bank set rates between 4.59 percent and 5.49 percent for civil servants, compared to 5.98 percent and 6.88 percent for doctors, nurses and other healthcare professionals.

Woori Bank proposed a range of 4.04 percent to 5.94 percent for civil servants, lower than the 4.59 percent to 6.29 percent for doctors and lawyers.