Banks' household loan rate fell in March as the Bank of Korea (BOK) has taken a breather in raising interest rates amid easing inflation and an economic slowdown, central bank data showed Friday.
Banks' household lending rate applied to new loans last month stood at 4.96 percent per annum on average, down 0.26 percentage point from a month earlier, according to the preliminary data from the BOK.
The March figure is down from the 5.22 percent in February.
The fall in borrowing costs came as the central bank froze its key rate at 3.5 percent in February.
Earlier this month, the bank also held its key interest rate steady as inflation appears to be easing and concerns are rising over an economic slowdown.
Banks lending rates have been soaring as the BOK had delivered seven consecutive hikes in borrowing costs since April last year.
Banks' mortgage lending rate inched down 0.16 percentage point on-month to 4.4 percent in April.
The rate banks charged for deposits also rose 0.02 percentage point to 3.56 percent.
Source: Yonhap News Agency