BNP Paribas Cardif Life Insurance and Shinhan Bank providing ‘Loan Safe Plan’ to protect the customers of New Hope Spore Loans
BNP Paribas Cardif Life Insurance is providing the ‘Shinhan Bank Loan Safe Plan’ to help reduce the risk of household debt for the financially vulnerable together with Shinhan Bank.
Shinhan Bank Loan Safe Plan is the first loan repayment guarantee service provided to New Hope Spore Loans customers in credit finance as part of Shinhan Financial Group’s ‘Together Project’ to support the financially vulnerable. With this collaboration, the two companies hope to help protect the household economy amid worsening economic and financial conditions.
BNP Paribas Cardif Life Insurance is a subsidiary of BNP Paribas Cardif in Korea, the insurance arm of BNP Paribas, and the world leader in creditor insurance.
At a time where financial authorities lead several support measures such as the activation of the banking sector’s loan products offering a preferential interest rate for the low-income class and the expansion of the New Hope Spore Loans limit in order to solve the financial difficulties of the financially vulnerable, Shinhan Bank and BNP Paribas Cardif Life Insurance start to provide the ‘Shinhan Bank Loan Safe Plan’, a creditor insurance service that will serve as a stepping stone for a healthy credit management as well as a reliable loan safety device for the low-income class and the low-credit class.
‘Shinhan Bank Loan Safe Plan’, based upon the BNP Paribas Cardif Life Insurance’s ‘(NP) The Safe Group Creditor Insurance (Renewable, 3 Critical Illness Type)’, is a group insurance service in which the insurance company repays the remaining loan balance if the customer, who received Shinhan New Hope Spore, has difficulty in repaying the loan due to an unexpected accident during the service period.
Guaranteed claims is up to KRW 35 million, and the service is provided for up to 12 months from the date of subscription. Since the insurance premium is fully supported by Shinhan Bank, customers can benefit from this service only by agreeing to service subscription after the loan is executed.
Jonathan Oh, the President and CEO of BNP Paribas Cardif Life Insurance, said “The ‘Shinhan Bank Loan Safe Plan’ is a service that manages the entire loan cycle of New Hope Spore customers for the first time in credit finance. As the risk of household debt repayment has recently increased due to high interest rates and inflation, not only the borrowers but credit finance companies are also paying attention to creditor insurance. It is because under the current situation, a comprehensive loan care is advised to prepare for various risks in the loan repayment journey. We hope that the ‘Shinhan Bank Loan Safe Plan’ can be a leading practice case for household loan management by being a practical safety device supporting customers facing loan repayment risks with a successful loan repayment.”
Meanwhile, BNP Paribas Cardif Life Insurance, which has been at the forefront of providing creditor insurance in the domestic insurance market, is also contributing to helping people deal with social problems such as debt inheritance by implementing a ‘Credit Care Program’ that provides integrated support for customers’ credit management along with related products. Currently, the company operates the credit management content hub ‘Credit Care Guide’ to support the healthy credit life of customers, and carries out the ‘Credit Care Academy’, a corporate social responsibility activity focusing on credit management for youth, single parents, and seniors.
 Requested by the Financial Supervisory Service (FSS), ‘New Hope Spore Loans’ is operated as one of policy finance loan products by local banks to support the financially vulnerable who meet the certain requirements in regards to their income and credit rating.