Shinhan Bank Lowers Interest Rate by 0.59%p for Second Round of Small Business Financial Support

From an annual rate of 3.25%~4.07% to 2.66%~3.48%

[Asia Economy Reporter Kangwook Cho] Shinhan Bank announced on the 25th that it will lower the new loan interest rate for the second financial support (trust guarantee) for small business owners, who are struggling due to the novel coronavirus infection (COVID-19), by 0.59%p per annum.

With this interest rate reduction, the interest rate for Shinhan Bank's second financial support (trust guarantee) for small business owners will decrease from the existing 3.25%~4.07% per annum to 2.66%~3.48% per annum.

Shinhan Bank decided to apply the reduced interest rate from applications submitted on the 23rd to expand the scope of the interest rate reduction.

The second financial support (trust guarantee) for small business owners has increased the support limit from 10 million KRW to 20 million KRW starting from the 24th, and small business owners who have used the micro small business interest subsidy loan can also apply for overlapping support. However, this applies only if the amount used in the first financial support is 30 million KRW or less.

Shinhan Bank operates the entire application and contract process for the second financial support (trust guarantee) for small business owners non-face-to-face via Shinhan SOL without the need to visit a bank branch, and currently, more than 95% of loan executions are conducted non-face-to-face. Elderly customers, joint business owners, and those who find non-face-to-face applications difficult can also apply at bank branches.

A Shinhan Bank official said, "We decided on this interest rate reduction to lower the financial burden on small business owners, and if the necessary documents are accurately submitted through Shinhan SOL, rapid loan execution is possible," adding, "We will continue to provide financial and non-financial support that is practically helpful to small business owners."