Chungnam Provides Loans with Interest Rates Within 1% for Small Business Owners

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province announced on the 29th that it will urgently provide funds for the ‘Firefighting Loan Plus’ with a loan interest rate within 1% starting from the 2nd of next month.

The loan interest rate within 1% is one of the lowest levels in the country, made possible by the province covering 2% of the interest, reductions in loan interest rates by commercial financial institutions, and a decrease in the guarantee rate by the Chungnam Credit Guarantee Foundation.

The support scale is a total of 100 billion KRW, and each company can borrow between 20 million and 30 million KRW.

The support targets are small enterprises and small business owners operating businesses within Chungnam who did not receive benefits from the first round of Somang Loan implemented in February, as well as local currency affiliated stores.

Among these, local currency affiliated stores will receive preferential guarantee fee benefits, which the province explains will significantly reduce financial burdens.

However, companies that received the first Somang Loan or this year’s Chungnam small business funds, or those that received central government funds this year, are excluded from the support targets.

The loan repayment condition is a lump-sum repayment after a 2-year grace period, and the actual burden interest rate borne by the company is within 1%.

Applications for the Somang Loan Plus can be made at the Chungnam Credit Guarantee Foundation headquarters and each branch, as well as at branches of Kookmin Bank, IBK, NongHyup Bank, Woori Bank, Shinhan Bank, and Hana Bank.

For more detailed information, please refer to the province’s website or receive guidance through the Chungnam Credit Guarantee Foundation headquarters and each branch.

Meanwhile, the province supported 1,670 cases (23.1 billion KRW) for general companies and 3,759 cases (76.9 billion KRW) for businesses in restricted industries, totaling 5,429 cases and 100 billion KRW through the first Somang Loan in February.