Toss Bank Partners with Seoul City to Realize Inclusive Finance... Benefits Worth 12.5 Billion KRW
Compare and Apply for Credit and Guarantee Loans at Once Online
Toss Bank announced on the 18th that it will launch the 'Seoul Rapid Dream Guarantee Loan' product for individual business owners and small business owners located in Seoul, in cooperation with the Seoul Metropolitan Government.
This product is launched in the form of Toss Bank supporting 12.5 billion KRW out of the 50 billion KRW Rapid Dream Fund this year, according to the agreement jointly signed by the three internet-only banks and the Seoul Metropolitan Government last August.
The 'Seoul Rapid Dream Guarantee Loan' targets self-employed individuals with a credit score of 839 or below (based on NICE) who have been operating for more than six months in Seoul. The loan limit is up to 30 million KRW, with an applied interest rate starting at 3.4% per annum (as of October 18, 2024). This includes an interest subsidy benefit of up to 1.8 percentage points per year for up to five years through secondary interest rate support. Additionally, half (50%) of the guarantee fee rate, which is set within 1% per annum, is supported by the Seoul Metropolitan Government, enabling small business owners to secure funds at low interest rates and significantly reducing financial costs.
The Seoul Rapid Dream Guarantee Loan allows busy individual business customers to apply for loans 100% non-face-to-face through Toss Bank within the Toss application (app) without the need to visit the bank in person. To maximize convenience for busy individual business customers, Toss Bank provides a service in the ‘Boss Loan’ menu where business credit loans and guarantee loans can be compared and applied for at once. Customers can check and compare multiple loan products on a single screen with just one click, without separately researching credit loans and guarantee loans, and can quickly proceed to execution through a simple process.
Toss Bank stated, "Through the Rapid Dream Guarantee Loan launched in cooperation with the Seoul Metropolitan Government, low- to mid-credit individual business customers can receive financial support more easily," adding, "We will continue efforts to realize inclusive finance so that small business owners can operate their businesses stably by cooperating with various local governments and regional credit guarantee foundations based on innovative financial technology to revitalize the local economy."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
