Household loans at five major local banks shrank for the sixth straight month in June, while deposits increased with interest rate hikes.  

The five major lenders -- KB Kookmin Shinhan, Hana, Woori and NH Nonghyup -- said on Friday their combined outstanding loans to households came to 699-point-65 trillion won as of the end of June, down one-point-41 trillion won from a month earlier. 

The figure fell below 700 trillion won for the first time since August of last year. 

The figure has been on a downward trend for six straight months since January, largely on a contraction in new lending regarding financial investments amid a bearish stock market. 

Combined outstanding credit loans came in at 130-point-68 trillion won in June, posting a drop for the seventh consecutive month.

Savings and installment deposits at the five banks, however, both rose amid interest rate hikes.