South Korea's household loans extended by local banks rose 11.5 percent in November from a year earlier due to an increase in collective loans, central bank data showed Wednesday.

Outstanding household loans from local lenders came to 704.6 trillion won ($601 billion) as of end-November, compared with 632.2 trillion won from a year earlier, according to the data from the Bank of Korea (BOK).

Compared with October this year, the amount rose by 8.8 trillion won.

"Mortgages increased 6.1 trillion won in November from a month earlier due to a steady rise in demand for collective loans," the BOK said. Collective loans are often associated with the reconstruction of old apartments.

South Korea's overall household debt reached a record high of 1,295.8 trillion won as of end-September, according to official data.

The Financial Services Commission, South Korea's financial regulator, has said that a tougher screening of borrowing qualifications will be expanded to group mortgage loans for newly built apartment purchases and lending by nonbank financial companies.

The Bank of Korea is set to hold its monthly rate-review session Thursday to decide whether to maintain or cut the all-time low rate of 1.25 percent.

In November, local lenders' outstanding corporate loans came to 759.9 trillion won, gaining 2.6 trillion won from the previous month. (Yonhap)