Shinhyup Offers Low-Interest, Unsecured Loans to Young Small Business Owners

[Asia Economy Reporter Song Seung-seop] Shinhan Credit Union announced on the 21st that it will support low-interest, unsecured loans for young small business owners dreaming of starting a business.

Eligible applicants are individuals and sole proprietors selected as qualified recipients for commercialization support among graduates of the New Business Startup Academy operated by the Small Enterprise and Market Service. They can apply for the "Shinhan Credit Union Youth Small Business Hope Support Loan" through 77 Shinhan Credit Unions nationwide, with a maximum limit of up to 10 million KRW per person.

The existing loan interest rate is around 3% per annum, but since the Shinhan Credit Union Social Contribution Foundation supports 2% per annum, the actual applied interest rate is a low-interest credit loan at 1% per annum, with a loan period of one year. The loan application period is within five months from the commercialization support agreement date (or notification date of recipient selection).

Additionally, Shinhan Credit Union supports young entrepreneurs who receive the "Youth Small Business Hope Support Loan" by providing free enrollment in the "Shinhan Credit Union Eobuba Accident Mutual Aid" for the first year with coverage up to 10 million KRW. In case of death due to an unexpected accident, the loan repayment is waived, and the insurance premium is fully covered by the Shinhan Credit Union Social Contribution Foundation.