Chungnam Shinbo and KakaoBank Sign Interest Rate Cap Agreement

Interest Rate Cap Set Within CD Rate (91-Day) + 2.0%

Chungnam Credit Guarantee Foundation announced on the 17th that it has signed an interest rate cap business agreement with KakaoBank to alleviate the financial burden on small and medium-sized enterprises (SMEs) and small business owners.

Chungnam Credit Guarantee Foundation formed a partnership with KakaoBank through a special contribution business agreement ceremony held on the 11th and has been continuously coordinating the details of the interest rate cap agreement with KakaoBank to reduce the financial burden on small business owners.

The implementation of the interest rate cap applies to credit guarantee applications submitted from the 16th, and through this agreement, SMEs and small business owners in the province who use KakaoBank can benefit from an interest rate cap of up to the CD rate (91-day) + 2.0% (as of July 16, 5.55%).

In particular, previously, when a partial guarantee certificate was issued by Chungnam Credit Guarantee Foundation due to excessive existing loans or high guarantee amounts, banks faced higher risks and thus set higher interest rates. With this agreement, the same interest rate cap will be applied even to partial guarantee certificates, which is expected to help reduce financial costs for SMEs and small business owners.

A representative of Chungnam Credit Guarantee Foundation stated, "We will continue to seek various ways to support SMEs and small business owners in the Chungnam region, and actively cooperate with related organizations to support the strong growth of local companies."