Gyeongnam Province Launches 'Illegal Private Loan Distancing' Campaign... Special Guarantee Support for Low-Credit and Vulnerable Small Business Owners

Gyeongnam Province will conduct the 'Illegal Private Loan Distancing' campaign to prevent small business owners from falling victim to illegal private loans.

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Saeyan] Gyeongsangnam-do recently announced on the 24th that it will conduct a 'Distancing from Illegal Private Loans' campaign as cases of illegal private loan damage targeting small business owners have been increasing amid the prolonged COVID-19 pandemic.

First, the province, city and county offices, and official websites and SNS channels will promote 'Distancing from Illegal Private Loans' and provide small business owners with information on preventing illegal private loan damage, as well as counseling and reporting centers.

In addition, a loan guarantee project will be promoted for low-credit and socially vulnerable small business owners exposed to illegal private loans.

Since June, the Gyeongnam Credit Guarantee Foundation has been implementing the 'Special Guarantee for Overdraft Account to Overcome Liquidity Crisis.'

Small business owners who have never used the credit guarantee of Gyeongnam Credit Guarantee Foundation can also use the 'Gyeongsangnam-do Small Enterprise and Small Business Owner First-time Special Guarantee.'

Support is provided by easing guarantee screening with a limit of 100 million KRW per company. The foundation takes full responsibility for the entire loan amount.

The guarantee fee paid by customers is significantly reduced to an annual rate of 0.6%, providing the maximum interest rate reduction benefit.

Also, since the 9th, the province has been implementing the 'Gyeongnam Hope Loan' for low-income salaried workers, unemployed persons, and micro-business owners undergoing credit recovery.

The limit is up to 15 million KRW, and applications can be made through the Credit Recovery Committee.

From mid-September, a 'Special Fund for Vulnerable Small Business Owners' worth 5 billion KRW is scheduled to be supplied.

Guarantee applications can be made on the Gyeongnam Credit Guarantee Foundation website.