Bank lending rates for new loans in South Korea continued to fall in July as market rates remained low amid a record-low policy rate, central bank data showed Thursday.

The average rate for new loans to households, companies and other organizations came in at 3.43 percent last month, down 0.06 percentage point from June, according to the data compiled by the Bank of Korea.

By category, the average lending rate for household loans dipped 0.05 percentage point on-month to 3.17 percent, while that for corporate lending fell 0.07 percentage point to 3.54 percent.

Lending rates had been trending lower in line with the BOK's series of rate cuts aimed at spurring growth. The latest rate cut took place in June, with the BOK citing the unexpected MERS outbreak as one of the key factors behind the move.

The lending rates briefly rebounded in May due mostly to a state-led policy loan scheme that was executed in late March and early April. Under the scheme, households were allowed to refinance their floating rate and short-term mortgage loans with fixed-rate and long-term loans. (Yonhap)