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Streamlining Renting: Tossbank's Jeonse & Rent Deposit Loan Unveiled

Source: Tossbank

Tossbank unveils its latest offering: the Jeonse & Rent Deposit Loan.

Why it matters:

Industry insiders say that expanding lending sources, such as Jeonse and Rent Deposit Loans, has been essential to Tossbank's profitability.

Tossbank's introduction of the Jeonse & Rent Deposit Loan represents a potentially streamlined and transparent process for home renters and buyers.

The Key Points

Tossbank became the first Internet bank to offer a non-face-to-face Jeonse deposit return guarantee, addressing concerns about growing Jeonse fraud.

The core of this service, "Tossbank Care," consists of three main components: Jeonse Protection Guarantee, Registration Change Notification, and Special Loan for Multiple Children.

In partnership with REFINE Co Ltd, a real estate rights research firm, Tossbank will increase transparency in real estate transactions by notifying users of landlords' property information changes.

The Details  

  • Jeonse Deposit Protection Guarantee: Tossbank customers who secure the Jeonse & Rent Deposit Loan can now apply for the Jeonse Deposit Return Guarantee. Previously, many may have bypassed this service due to either lack of awareness or perceived high costs. In cooperation with the Housing Finance Corporation (HF), Tossbank has reduced the guarantee fee to an annual rate of 0.02-0.04%.
  • Notification of register changes: For greater clarity, users of the Toss app will receive updates on any changes to their landlord's property details. This includes changes in landlord identity or foreclosures. All of these services are available at no additional cost.
  • Loan Categories and Customization: Tossbank offers the Jeonse & Rent Deposit Loan in three categories: General, Youth, and Multi-Child Special, with a borrowing limit of KRW 222 million. The Multi-Child Special Loan is specially designed for customers with several minor children and provides loans up to KRW 222 million, covering 88% of the rent deposit. The loan amount is independent of income and debt considerations.
  • Interest Rates: Interest rates for the General/Multi-Child Jeonse & Rent Deposit Loan range from 3.32% to 5.19%. Meanwhile, the interest rates for the youth segment range from 3.42% to 4.06%.

To customize the loan, Tossbank evaluates a customer's age, income, and family composition to adjust the loan.

For example, young adults over 34 who do not own real estate are eligible for a loan covering 90% of the rent deposit, with a maximum of KRW 200 million.

According to the press release, Tossbank emphasized its commitment to alleviating customer concerns and aims to offer both reliability and convenience.