Up to 38.75 Billion KRW in Autonomous District
'Seocho-gu Small Business Ultra-Fast Loans'
Accepted at 11 Local Commercial Bank Branches
Seocho-gu, Seoul (District Mayor Jeon Seong-su) announced on the 7th that it has been implementing the "Seocho-gu Small and Medium-sized Business Ultra-Speed Loan" worth 38.75 billion KRW since the 5th of last month. It is the largest in scale among autonomous districts.
The "Seocho-gu Small and Medium-sized Business Ultra-Speed Loan" is a project in which the district signed a special guarantee business agreement with the Seoul Credit Guarantee Foundation and financial institutions (Shinhan, Woori, Hana, Kookmin Banks) to provide low-interest loans to small and medium-sized businesses. Last year alone, 1,109 companies received loans.
Through this agreement, the district, together with four financial institutions, contributed a total of 3.1 billion KRW to the Seoul Credit Guarantee Foundation, securing a special guarantee fund of 38.75 billion KRW, the largest among Seoul's autonomous districts, and it is expected that small and medium-sized businesses will be able to receive loans up to this amount.
The Seoul Credit Guarantee Foundation provides credit guarantees to small and medium-sized businesses regardless of collateral or credit rating. In particular, it relaxes guarantee screening criteria and offers simplified screening to guarantee up to 70 million KRW, and if separate screening requirements are met, guarantees up to 100 million KRW are possible.
Subsequently, financial institutions provide low-interest loans with a floating interest rate in the 3% range based on the guarantee amount from the Seoul Credit Guarantee Foundation. When visiting designated banks, the process from application to loan disbursement is handled quickly in a one-stop manner, providing immediate help to small and medium-sized businesses urgently needing funds, according to the district. Loan repayment terms can be selected within five years.
Small and medium-sized businesses wishing to apply for loans can visit 11 designated branches of Shinhan, Woori, Hana, and Kookmin Banks within the district with the required documents. Detailed information can be found on the Seocho-gu Office website.
In addition, the district supports various low-interest loan projects for small and medium-sized businesses. The "Small and Medium Enterprise Development Fund Loan Support Project," worth a total of 6 billion KRW, applies the lowest interest rate among autonomous districts at 0.8%, with a limit of 100 million KRW per company. The "Commercial Bank Cooperation Fund Loan Interest Support" project supports up to 3% of the interest when loans are executed at contracted commercial banks. All loan projects will continue until funds are exhausted.
District Mayor Jeon Seong-su said, "I hope the ultra-speed loan will provide practical help to small and medium-sized businesses facing financial difficulties," and added, "We will continue to implement policies that serve as a strong support for small and medium-sized businesses, including various low-interest loan supports."
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