Woori Bank Expands Loan Rate Cap & Launches New Loans for Low-Income Borrowers

March 22, 2026 Priya Shah – Business Editor Business

Ouribank, a major South Korean financial institution, will extend its cap on personal credit loan interest rates to include new loans, effective March 23rd, according to a statement released Friday. The bank will limit rates to within 7% annually.

The move aims to alleviate the financial burden on vulnerable populations facing economic headwinds and rising living costs, according to the bank. Previously, the 7% cap applied only to loan extensions or re-agreements. Now, customers who have maintained a relationship with Ouribank – holding savings accounts, credit cards, or applying for subscription savings – for at least one year will qualify for the capped rate on new loans for a maximum of one year and a single application.

Ouribank anticipates that over 10,000 loans will benefit from the interest rate ceiling. Alongside the expanded cap, the bank is launching “Our WON Dream Lifestyle Loan,” a new product targeted at low-income individuals. The loan is available to workers earning less than 25 million won annually, including freelancers, homemakers, and those with non-wage income.

The new loan product utilizes alternative credit scoring, incorporating data from financial, telecommunications, and small payment records to expand eligibility to those with credit ratings as low as the 8th tier. Applicants with limited documented income are also eligible. The “Our WON Dream Lifestyle Loan” offers up to 10 million won, with interest rates starting in the high 4% range, capped at 7%. Repayment terms extend up to 10 years, including a 3-year grace period. Additional preferential rates will be offered to youth, seniors, individuals with disabilities, and recipients of basic livelihood support.

According to Ouribank officials, the measures are part of the Woori Financial Group’s broader “Future Co-growth Project,” focused on expanding financial inclusion. “We will continue to expand various support measures so that finance can play a role as a social safety net,” an Ouribank representative stated.