Applications for household loans have dropped sharply just one month after the government implemented tighter lending regulations.

According to financial authorities on Sunday, the average daily volume of household loan applications, including mortgages and credit loans, submitted to banks reached one-point-78 trillion won during the first 18 business days of July, marking a 56-point-five percent decrease compared to the same period in June.

The decline follows new rules introduced on June 27, which capped mortgages at 600 million won for home purchases in the capital region and prohibited home-backed loans for multiple-homeowners.

The impact of the regulations is also evident in the growth of outstanding household loans at the nation's top five banks.

As of last Thursday, total household loans stood at 758-point-92 trillion won, with the daily average increase falling 24 percent to 170 billion won, down from 225-point-one billion won a month earlier.