Can I fully repay the outstanding loan before final due date? Can I request such prepayment at any Bank’s Branch/Transactional Office?

- Customers can pay before the due date (more than the repayment schedule) or pay before the due date with the corresponding prepayment fee as agreed in the Credit Contract.

- Loan repayment can in principle be recorded at any Shinhan branch.

- However, in order to facilitate customer care and property mortgage, the Customer needs to notify the branch in charge of the loan for the best support.

How will my credit history be affected when the loan is overdue?

- In case the customer's loan at a bank is overdue and the debt group is changed, this debt group will be reported to CIC (National Credit Data Center).

- Here, the highest (worst) debt group will be applied by CIC to customers at banks where customers have outstanding loans.

Does bank offer any banking service to help me easily manage my loans?

Customers who install the Sol application will receive a monthly push-up notification of the amount to be paid periodically before the payment due date. Besides, customers can easily look up their loan repayment schedule and payment history on this application.                                   

What is the maximum amount that I can borrow?

Loan limits are determined by product: up to 70% of the value of the mortgaged property, and the total monthly repayments (principal + interest) of all outstanding loans and credit cards of the customer does not exceed 70% of the average monthly income of the customer.

What is the maximum loan tenor that I can apply for?

The maximum loan period is 30 years, and is limited by the age of the borrower and the mortgagor (18 -70 years old at the time of loan application and Maximum 70 years old at the end of the loan term)

What are the current applicable interest rates?

The interest rate is applied according to the interest rate schedule announced by the Bank from time to time.

During the processing of my application, do I have to pay any fee?

- Customers do not have to pay fees during the application evaluation stage.

- In case the application is approved, before disbursing, the Customer needs to pay the costs related to the collateral (to a third party) including: appraisal fee, notary fee, registration of secured transaction, purchase of fire and explosion insurance for the mortgaged property and other expenses (if any).

What are documents that I have to prepare for the loan application?

Document include: legal borrowers, mortgagors; documents proving income, legal documents of collateral and other documents (if any).

Do I have to buy insurance during the loan tenor?

 In case of mortgage of a house/apartment, customers need to buy fire and explosion insurance for the secured property during the loan term.

What is the Bank’s process from the time the Borrower submits a loan application until disbursement?

The basic process includes the following steps:

  1. Customers provide documents ->
  2. Bank appraises documents including legal, revenue source & collateral ->
  3. Bank approves loan application ->
  4. The customer and the Bank sign a credit contract and carry out the procedures for mortgaging the collateral ->
  5. The Bank disburses after receiving the results of secured transaction registration and the customer fulfills the pre-disbursement conditions according to the signed credit contract.

During the loan tenor, can I ask the bank to swap collateral(s)?

In case the Customer requests to change the security assets, the Bank will appraise the replacement security assets.

If the replacement property is in accordance with the current regulations, the Bank and the customer will sign contracts and carry out legal procedures to mortgage the new property and release the old one.

Costs incurred:

- Fee for changing collaterals according to the Bank's fee schedule from time to time

- Expenses for deregistration of old asset security transactions (for third parties)

- Expenses related to new security assets (for third parties) include: appraisal fee, notary fee, registration of secured transaction, purchase of fire and explosion insurance for the mortgaged property and other expenses (if any).

How long after can I get back my collateral documents since once I fulfill my prepayment obligation to mortgage loan?

Customers are encouraged to notify the Bank in advance before finalizing the loan. Accordingly, the Bank's branch can proactively carry out the procedures for handing over assets to the Customer on the date scheduled by both parties.

If I already have a personal account at SHBV, will my monthly installments be automatically deducted from this account or do I have to manually transfer money to my borrowing account?

In case the customer already has a current account at Shinhan, the customer's loan will be collected automatically at the loan payment due date.

How is the monthly installment calculated and how to repay?

For real estate mortgage loans, customers will make monthly payments of principal and interest according to the following principles:

- Principal: pay the same amount every year

- Interest: monthly interest calculated on decreasing balance