Bank lending rates for new loans in South Korea fell for a fourth straight month in April following a surprise rate cut in the previous month that sent the base rate to a record low, central bank data showed Thursday.

In a surprise move, the Bank of Korea slashed its policy rate by a quarter percentage point to 1.75 percent in March as part of wider policy efforts to spur growth in Asia's fourth-largest economy.

The average rate for new loans to households, companies and other organizations came in at 3.36 percent last month, down 0.25 percentage point from March, according to the BOK data.

By category, the average lending rate for corporate loans declined 0.14 percentage point to 3.67 percent, while that for households dropped 0.25 percentage point to 2.96 percent.

The average savings deposit rate also fell 0.14 percentage point to a record low of 1.78 percent over the cited period, according to the data.

The data comes amid growing concerns that low interest rates may further spur the country's already bulky household debt as home buyers opt to borrow more. Household debt totaled 1,040.4 trillion won ($937.7 billion) as of the end of March, growing 12.8 trillion won from three months earlier. (Yonhap)