Daegu Bank Surpasses 100 Billion KRW in Second Round of COVID-19 Loans

[Asia Economy Reporter Kim Min-young] DGB Daegu Bank's second round of COVID-19 loans for small business owners affected by the novel coronavirus has surpassed 100 billion KRW in performance.

According to Daegu Bank on the 22nd, since it was the first regional bank to implement the government's second support loan program at the end of May, it has executed 8,128 loans totaling 102 billion KRW as of the 19th. This accounts for 5.7% of the total bank support amount and is the largest amount among regional banks.

In July, the bank launched a non-face-to-face second financial support loan for small business owners, eliminating the hassle of preparing documents and applying for guarantees at branches, and providing various borrower convenience-oriented services.

This loan, a policy financial product supported by credit guarantee certificates from the Korea Credit Guarantee Fund for small business owners and individual entrepreneurs struggling due to COVID-19, can be used up to 20 million KRW per business with an annual interest rate ranging from 2.79% to 4.99%. It follows a 2-year grace period and a 3-year principal installment repayment method, with no prepayment penalty.

A Daegu Bank official stated, “We are making every effort to faithfully serve as a reliable financial partner in the local community by providing various financial supports for small business owners hit by COVID-19, and we will actively promote non-face-to-face products and services to enhance customer convenience.”