K Bank Surpasses 200 Billion KRW in Real Estate-Backed Loans for Business Owners

"Industry-Leading Low Average Interest Rate of 3.78% Per Year"

K Bank announced that the outstanding balance of real estate-backed loans for individual business owners has surpassed 200 billion KRW.

The "Sajangnim Real Estate-Backed Loan" is a 100% non-face-to-face real estate-backed loan product for individual business owners, first introduced by K Bank in August last year among domestic banks. It provides business operation funds up to 1 billion KRW and for up to 10 years, with a maximum limit of 85% of the property’s market value. Currently, both senior and subordinated loans are available, and customers can apply for both new and refinancing loans.

Looking at the distribution of customers by industry, wholesale and retail, as well as accommodation and food services, accounted for 46% of the total. By age group, customers in their 40s and 50s made up 81%. By region, non-metropolitan areas accounted for 31%.

The key advantage of this product is that the entire application process is 100% non-face-to-face. While real estate-backed loans for individual business owners typically require branch visits and repetitive document submissions, the Sajangnim Real Estate-Backed Loan allows all steps, from submitting key documents to loan execution, to be completed entirely online.

The interest rate is also low. According to the Korea Federation of Banks’ disclosure, from December last year to February this year, the average annual interest rate on K Bank’s secured loans for individual business owners was 3.78%, which is 1 percentage point lower than the average rate of the five major commercial banks (4.78%) during the same period.

Among all loans, 80% were reviewed within three days of application, and 90% were executed within 10 days. Cases in which both review and execution were completed within a single day accounted for 5% of the total.

A K Bank official stated, "Even in difficult economic conditions, we are supporting small business owners and self-employed individuals with industry-leading low interest rates, providing up to 1 billion KRW. We will continue to contribute to the business stability of small business owners and the revitalization of the economy through competitive products and services."