A weighted average rate for new bank loans was an annualized rate of 2.74 percent in December, up 0.03 percentage points from the previous month, according to the Bank of Korea (BOK).
Lending rate for companies added 0.01 percentage point to 2.73 percent, while rate for household loans advanced 0.07 percentage points to 2.79 percent in the month.
Banks lifted the rate for credit loan to households in a bid to lower demand for such loans. The COVID-19 resurgence encouraged households to borrow money from banks for living costs.
Credit loan rate for households jumped 0.49 percentage points from a month earlier to 3.50 percent in December, marking the fastest increase in over eight years since September 2012.
Rate for mortgage loan to households gained 0.03 percentage points to 2.59 percent last month.
Rate for banks' savings deposits was an annualized average rate of 0.90 percent in December, unchanged from the previous month.
The spread between deposits and loans came to 1.84 percent in December, up 0.03 percentage points from a month ago.
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