Proprietary 'alternative credit scoring model for ordinary borrowers' applied

[Shinhan Bank]
[Shinhan Bank]

Shinhan Bank announced Thursday it will launch a digital mid-rate credit loan designed to improve financial access and reduce interest costs for low- and mid-credit borrowers.

The bank will release the "Super SOL Mid-Rate Loan" on Friday, targeting customers whose external credit scores — from NICE or KCB — fall in the bottom 50 percent.

The loan offers up to 20 million won ($14,300) per borrower at a fixed annual rate of 5.5 to 6.9 percent, with a repayment period of up to 36 months. Borrowers may choose between principal-only or equal principal-and-interest installment repayment.

Customers can receive preferential rate reductions of up to 1.4 percentage points per year based on transaction history. Meeting conditions such as salary transfers and Shinhan Card usage qualifies borrowers for up to 0.9 percentage points off. An additional 0.5-percentage-point discount will apply as a launch promotion for customers who take out the loan by year-end.

A key feature of the product is its use of an in-house alternative credit scoring model for ordinary borrowers, which Shinhan Bank developed and introduced in March. The model expands the screening scope to include customers who were difficult to assess using conventional financial data alone — allowing "thin filers," such as young adults entering the workforce and homemakers who lack income documentation or a sufficient credit history, to access the loan.

The entire process, from application to disbursement, is handled digitally through the Shinhan Super SOL mobile app. Borrowers looking to refinance existing loans into the Super SOL Mid-Rate Loan can also do so without visiting a branch. Last month, Shinhan Bank also launched the "Shinhan Mutual Refinancing Loan 2" to ease the financial burden on low- and mid-credit customers currently holding savings bank credit loans.

"By applying our proprietary alternative credit scoring model for ordinary borrowers, we have broadened financial support to include thin filers who were difficult to assess with conventional financial data alone," a Shinhan Bank official said. "We will continue to expand inclusive finance to improve financial access and meaningfully reduce the cost of borrowing for vulnerable groups, including low- and mid-credit customers."


forest@heraldcorp.com