KakaoBank Raises Maximum Limit for Individual Business Owner Unsecured Loans to 300 Million Won

For Professional Individual Business Owners and High-Quality Businesses
Loan Interest Rates Starting at an Annual Minimum of 3.34%

KakaoBank announced on June 2 that it will increase the maximum limit for unsecured loans to individual business owners from the previous 100 million won to up to 300 million won.

This product can be applied for non-face-to-face, and within just two and a half years of its launch, the outstanding loan balance has reached 1 trillion won. As of June 2, the interest rate for the loan starts at an annual minimum of 3.34% (ranging from a minimum of 3.34% to a maximum of 9.27%).

If an individual business owner applies for an unsecured loan exceeding 100 million won, a "post-loan inspection for misuse of funds" procedure must be carried out after the loan is executed. For the first time in the financial sector, a non-face-to-face scraping-based post-loan inspection procedure has also been introduced.

To prevent the misuse of individual business owner loan funds for personal purposes, such as repayment of household mortgage loans, customers are guided through important notes and O/X quizzes during the loan application process. When the post-loan inspection period arrives after the loan is executed, customers can conduct the inspection themselves via the KakaoBank application (app). On the loan usage details page, customers can use the "simple inquiry" feature to import various National Tax Service data, such as tax invoices and loan repayment records. In addition, supporting documents for sales activity expenses, income details, and employee salaries can be submitted by attaching images under the "other documents" section.

Once all usage details for the loan funds have been submitted, customers can receive a "loan fund usage statement" after the document adequacy review and electronic signature steps. All inspection procedures must be completed within three months after the loan execution. If the deadline is missed, customers should note that the benefit of the term may be forfeited.

KakaoBank stated, "With the increasing number of individual business owners seeking funds to expand or operate their businesses, we have raised the loan limit to 300 million won," adding, "We will continue to launch products and services tailored to customer characteristics in the future."