Bank and Sojinkong Offer Loan Interest Discounts to Small Business Owners Completing 'Management Consulting'

Banks offer interest rate discounts of 0.2%P or more, Sojinkong offers 0.1%P discounts

From the 2nd, mutual application of loan interest rate discounts will be implemented for those who have completed management consulting between banks and the Small Enterprise and Market Service (SEMAS).

According to the Financial Supervisory Service on the 1st, banks will provide loan interest rate discounts (preferential treatment) to those who have completed SEMAS's small business support programs, and SEMAS will reciprocally apply preferential interest rates on small business policy funds to those who have completed banks' management consulting programs. Currently, interest rate discounts are applied only when using loan products from the bank where the consulting was completed, and similarly, SEMAS's preferential interest rates apply only when borrowing SEMAS policy funds.

The Financial Supervisory Service explained, "To further activate small business support programs such as management consulting and help reduce the loan interest burden on small business owners, banks and SEMAS have agreed to mutually apply loan interest rate discounts to those who have completed banks' management consulting and SEMAS support programs."

The participating institutions include 14 banks: Shinhan, Woori, SC Jeil, Hana, Kookmin, Daegu, Busan, Gwangju, Jeju, Jeonbuk, Gyeongnam, Industrial Bank of Korea, NongHyup, and Suhyup, as well as SEMAS. Three internet-only banks?Kakao Bank, K Bank, and Toss Bank?are considering participation at a later date.

Eligible for the discount are small business owners who have completed the relevant programs from the year three years prior to the loan application date. For loan applications in 2024, consulting completed after January 1, 2021, will be recognized. Bank consulting and educational programs related to capacity building and competitiveness improvement require at least 3 hours of completion.

Banks will offer an interest rate discount of 0.2 percentage points (P) or more, and SEMAS will provide a 0.1 percentage point discount. Those who have completed consulting or programs should obtain a certificate of completion and submit it to the lending institution. The Financial Supervisory Service stated, "It is expected that the loan interest burden will be alleviated as interest rate discounts will be applied when using bank business loans or SEMAS policy fund loans."