First Internet Bank... 1 Billion KRW Limit
Additional Loans Possible Even with Loans from Other Financial Institutions or Lease Contracts
K Bank is expanding its 'Sajangnim Real Estate Secured Loan' product line to target the individual business owner market.
On the 24th, K Bank announced that it will extend the 'Sajangnim Real Estate Secured Loan,' launched last month as the first internet bank product, to include subordinate loans.
The Sajangnim Real Estate Secured Loan is a product that provides up to 1 billion KRW in working capital to individual business customers such as small business owners. Customers can complete the entire loan process?from application to document submission and disbursement?non-face-to-face through the K Bank application without visiting a branch.
Existing individual business customers who have taken out real estate secured loans can refinance their loans, which is expected to reduce interest costs. Additionally, prospective individual business owners preparing to start a business can also apply for the loan, which is a distinctive feature.
Since launching the Sajangnim Real Estate Secured Loan last month, K Bank had only allowed senior loans to ensure product stability. In other words, loans were only available for collateral without loans from other financial institutions or lease contracts.
With the expansion to subordinate loans, even if there are loans from other financial institutions or lease contracts on the same collateral, K Bank can provide additional loans if working capital is needed for business purposes. Loan disbursement can be made within as soon as two days, and subordinate loans are offered at the lowest interest rates in the banking sector, starting in the low 4% range annually (as of the 23rd).
For example, an individual business owner who owns an apartment valued at 800 million KRW according to the Korea Real Estate Board and is currently repaying a 300 million KRW loan from another financial institution can receive an additional loan through K Bank. The loan limit for the Sajangnim Secured Loan product is up to 500 million KRW per loan and 1 billion KRW per customer, with subordinate loans limited to within the collateral value.
Through this expansion of subordinate loans, small business owners and other individual business customers can more conveniently secure additional working capital to support smooth business operations.
K Bank has developed and operates its own AI system to verify that the loan funds are used for business working capital. The system logically analyzes industry information in the business registration certificate and compares it with sales report data to thoroughly verify whether the customer's reported industry and sales information match.
A K Bank official said, "After launching the product as the first internet bank last month and operating it for a month, we have prepared the system for subordinate loans. We will continue to provide convenient financial services with enhanced benefits so that more Sajangnim customers can focus on their businesses."
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