'Interest-Free Loans for Small Business Owners' Up to 20 Million Won, 1 Year Interest-Free... Total Scale of 20 Billion Won... Applications Available from April 28 Until Funds Are Exhausted at Woori Bank and Shinhan Bank Branches
[Asia Economy Reporter Jongil Park] Gwanak-gu (Mayor Park Junhee) is conducting the ‘Interest-Free Loan Support for Small Business Owners’ project to assist local small business owners struggling due to COVID-19.
The district is collaborating with the Seoul Credit Guarantee Foundation, Woori Bank, and Shinhan Bank to provide emergency business stabilization loans to about 1,000 small business owners, with a total scale of 20 billion KRW, to stabilize management amid the worsening difficulties caused by weakened consumer sentiment and domestic demand slump due to COVID-19.
Loan applications began on April 28 at the respective branches of Woori Bank and Shinhan Bank, and within four days, 397 applications were received, showing strong participation from many small business owners.
Applications are accepted until funds are exhausted.
The loan limit is up to 20 million KRW, with a loan period of 5 years consisting of a 1-year grace period and 4 years of repayment. The first year is interest-free, and the loan interest rate is a variable rate (1 year) plus an additional rate within 1.7%.
Eligible applicants are small business owners who have had a business registered in Gwanak-gu for more than six months. Businesses restricted from policy fund loans and those unable to obtain a credit guarantee certificate from the Seoul Credit Guarantee Foundation are excluded.
Applicants must bring identification and a copy of their business registration certificate and visit the designated bank reception desks during bank working hours, from 9 a.m. to 4 p.m. on weekdays, to apply in person.
Documents submitted to the banks undergo a review for issuing a guarantee certificate by the Seoul Credit Guarantee Foundation. Those who pass the review will be notified of the loan decision, after which they must visit the bank again to complete loan documents to receive the loan.
The reception desks are located at Woori Bank branches in Gwanak-gu (Gwanak-gu Office Branch, Sadang Station Financial Center, Nakseongdae Station Branch, Bongcheon Central Branch, Seoul National University Entrance Branch) and Shinhan Bank branches (Gwanak Branch, Gwanak Sinsa-dong Branch, Nakseongdae Station Branch, Seoul National University Entrance Branch, Seoul National University Branch).
For inquiries by branch and detailed information, please refer to the announcement on the district’s website under News - Notices.
Mayor Park Junhee said, “I hope this project helps small business owners overcome management difficulties during this challenging time of ongoing COVID-19 restrictions and reduced consumption.” He added, “We will continue to make efforts to stabilize small business management through various livelihood measures, including interest-free loan support in active cooperation with other institutions, loans from the Small and Medium Business Development Fund, and damage support payments for closed small businesses.”
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