Welcome Savings Bank Lowers Seoul Credit Guarantee Loan Interest Rate to a Minimum of 3.9%

Welcome Savings Bank will lower the interest rate on guaranteed loans launched with the Seoul Credit Guarantee Foundation to a minimum of 3.9% starting from the 15th.

[Asia Economy Reporter Song Seung-seop] Welcome Savings Bank announced that it will lower the interest rate on guaranteed loans, launched in collaboration with the Seoul Credit Guarantee Foundation, to a minimum of 3.9% starting from the 15th.

This product was launched last year to support small and medium-sized enterprise employees and small business owners in Seoul.

With this measure, the interest rate on guaranteed loans will be reduced by 2.6 percentage points to a minimum annual rate of 3.9~4.4%. It will apply to loan applications currently undergoing the screening process. The specific interest rate will vary depending on the credit score.

The current handling limit for guaranteed loan products is 20 billion KRW, with a maximum of 30 million KRW per person. Contracts can be made for up to 60 months, with a 1-year grace period and 4 years of equal principal repayments.

A representative from Welcome Savings Bank explained, “We lowered the interest rate to cost level to revitalize financial services for the underprivileged,” adding, “We plan to support Seoul’s small business owners and SMEs to overcome COVID-19 quickly.”