[Asia Economy Reporter Kim Bo-kyung] The Korea Federation of SMEs announced on the 13th that it will provide interest-free medical and disaster loans of up to 20 million KRW to small businesses and small merchants enrolled in the Noryanwoosang program.
The Noryanwoosang interest-free medical and disaster loan is a newly implemented loan product since December last year.
Previously, Noryanwoosang members could only apply for a suspension of premium payments within six months if they suffered damage due to illness, injury, or disaster. However, since December last year, if certain conditions are met, members can receive interest-free medical and disaster loans within a certain limit of the premiums they have paid.
The medical loan allows up to 10 million KRW interest-free for one year if the member is hospitalized for continuous treatment for five days or more due to illness or injury. The disaster loan allows up to 20 million KRW interest-free for two years if disaster verification documents are submitted in case of disasters such as typhoons or earthquakes. Existing borrowers can reduce their interest burden by converting their loans to disaster or medical loans if they meet the requirements.
Park Yong-man, head of the Mutual Aid Business Division at the Korea Federation of SMEs, stated, "In a situation where the business environment for small merchants is becoming very difficult due to the ongoing COVID-19 pandemic, we hope that the interest-free medical and disaster loans introduced to help business activities even a little will be actively utilized."
For inquiries about eligibility, application methods, and required documents for medical and disaster loans, consultations are available through the Noryanwoosang call center, the Mutual Aid Operations Department of the Korea Federation of SMEs, or local headquarters and centers.
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