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Lending rates fall in March for first time in four months

Published: 28 Apr. 2026, 13:33

A real estate agency in Seoul on April 27 [YONHAP]

Banks' overall lending rates fell for the first time in four months in March as a decline in corporate loan rates outweighed a rise in household lending rates amid tighter regulations aimed at stabilizing the housing market, data showed Tuesday.

The average interest rate on new bank loans stood at 4.2 percent last month, down 0.06 percentage points from February, according to data from the Bank of Korea.

This marks the first on-month decline since November of last year.

The average rate on corporate loans fell 0.06 percentage points to 4.2 percent, while the rate on new household loans rose 0.06 percentage points to 4.51 percent.

The average rate on mortgage loans edged up 0.02 percentage points to 4.34 percent, reaching its highest level since November 2023, when the figure stood at 4.48 percent.

The government has imposed stricter rules on home purchase loans to cool the overheated property market and rein in household debt.

At its latest rate-setting meeting earlier this month, the central bank kept its benchmark interest rate unchanged for the seventh consecutive meeting, as uncertainty in the Middle East prompted a cautious stance amid risks of inflation, currency weakness and slower growth.

Yonhap