Shinhan Bank announced on April 28 that it has launched a new product called the "Shinhan Business Closure Support Refinancing Loan," which allows individual business owners who have closed or are planning to close their businesses to convert their business loans into long-term, low-interest household loans.
The refinancing loan is available for business loans that are being repaid normally, including those secured by credit guarantee foundations, regional credit guarantee foundations, or real estate collateral.
The applicable interest rate and loan term vary depending on the type and balance of the loan. For example, business owners who previously received unsecured loans of up to 100 million KRW will be subject to an interest rate of 2.83% as of today (the five-year financial bond rate plus 0.1 percentage points), and the repayment period can be set for up to 30 years according to the borrower's repayment plan.
This refinancing loan is a follow-up measure to the "Banking Sector Financial Support Plan for Small Businesses," which was jointly announced by the Financial Services Commission, the Ministry of SMEs and Startups, and the Financial Supervisory Service in December 2024.
A Shinhan Bank representative said, "We are now able to reduce the repayment burden for small businesses and self-employed individuals who have decided to close their businesses due to difficulties," adding, "We hope this will lessen the burden of lump-sum repayment and provide practical assistance."
Meanwhile, on April 25, Shinhan Bank signed a mutual growth agreement with the Seoul Metropolitan Government and 18 chicken franchise brands to introduce the "Seoul Delivery Plus Price System," a program that will lower consumer prices by up to 30%. Starting in June, the bank also plans to provide 20 billion KRW in mutual growth loans to small business owners participating in Seoul Delivery Plus.
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