Better loans for those who pay their SKT bills on time

Are those who pay off their mobile phone bill in full every month likely be outstanding customers at financial institutions?

The financial industry clearly thinks so, which is why several major banks, credit card companies and loan providers have joined hands with SK Telecom.

The plan is to use the information on customers that have never been late on their mobile bills and use it as part of their credit evaluation when they apply for loans.

KB Kookmin Bank and Shinhan Card are planning to introduce new financial products that have lower bars on loan requirements for outstanding SK Telecom subscribers including additional discounts on interest rates next month, while Hyundai Capital is planning of introducing a similar product in June.

KB Kookmin Bank’s product will be focused on unsecured loans, while Shinhan Card’s service will be provided on credit card loans. Hyundai Capital’s product will be on car installment payments.

The companies believe these products will benefit young people or housewives that have a disadvantage when it comes to applying for loans.

Both groups are likely to have less credit information on file, which would typically lead lenders to refuse them loans or charge them higher interest rates.

BY HAN AE-RAN [lee.hojeong@joongang.co.kr]