Annual income over total loans from 750 to 900% by management
"rather than mortgage repayment ability to evaluate" LTI seemed lower
The Financial Supervisory Commission (FSC) regulates individual business lending by the ratio of loans to income (LTI). LTI is a system that checks the ability of a self-employed person to repay more than 100 million won.
The LTI was originally operated by the bank itself, but last month it was formulated through a guideline for individual loan management. The LTI is expected to decline as the financial authorities are in direct control. The amount of money a self-employed person can borrow is reduced accordingly.
◇ One billion won
to build a billion won annually The financial authorities do not present the level of LTI regulation, but used it as a reference for loan review. As it is an autonomous policy, the concept and application ratio of LTI for each bank is very different. An official of a commercial bank said, "We usually manage the loan amount to 750 ~ 900% of the annual income and 30% of the annual income to the annual income."
When you buy a building worth 1 billion won to rent a building, the maximum loan limit is 500 to 600 million won. The bank does not just lend the money, but also raises enough rental income to repay it.
Assuming a rental income of KRW 60 million a year, the total loan amount (in the case of 500 million KRW) is about 830% of the annual income. If interest is paid at a 3% interest rate on a loan, if the principal is repaid at the expiration of the interest rate, the repayment of principal and interest (15 million won) will be 25%. It is the policy of the bank to provide loans when meeting the LTI requirements.
◇ Repayment ability evaluation formulated ...
Strengthening regulations on lending to private providers can serve as a deterrent to the base rate hikes. The balance of individual borrowers in the commercial banks was 199.888 trillion won at the end of last month, and they are hurt by the recession because they are focused on specific industries such as rental business and restaurant business.
The Financial Services Authority formulated the LTI, raising the threshold for individual borrowers. A financial official said, "In the past, we did not make as much as individual household loans to assess the income of household loans," he said. "In the future, individual business lenders will focus on repayment through income rather than on collateral collection."
Another LTI official said, "LTI had room to spare compared to the rate of mortgage approval (LTV) and total debt repayment ratio (DTI)." I looked forward.
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