3.5 Trillion Won Scale Commercial Bank Secondary Loan Support to Be Released on the 1st of Next Month

[Asia Economy Reporter Kangwook Cho] A secondary interest subsidy loan program from commercial banks for small business owners struggling due to the spread of the novel coronavirus infection (COVID-19) will be newly launched on the 1st of next month. The supply scale of the newly released loan product is 3.5 trillion KRW, and the loan interest rate is 1.5%.

The Financial Services Commission announced on the 27th a joint plan with related organizations titled 'Rapid Execution Plan for Financial Support to Small Business Owners in Response to COVID-19,' stating that after completing system preparations, the secondary interest subsidy loan program from commercial banks will be launched starting from the 1st of next month.

This is a credit loan product targeting small business owners with credit ratings from 1 to 3, with the loan interest rate lowered to 1.5% through secondary interest subsidy support from commercial banks.

The low interest rate (1.5%) applies for one year. Loans can be received within 5 days after application, and loans are available without guarantee fees (at the level of 0.5~0.8%).

Additionally, the Financial Supervisory Service plans to check the execution performance by each bank and encourage early expansion of supply.

The Financial Services Commission explained, "The internal evaluation grade standards for corporate credit loan assessments by each bank may differ somewhat from the personal credit rating grades provided by NICE Information Service."