26 Savings Banks to Offer "HaeSsalLoan Plus" Loans for Self-Employed at 5% Range

The Korea Federation of Savings Banks announced on June 27 that it has signed a business agreement with the Korea Federation of Credit Guarantee Foundations to reduce financial costs for self-employed individuals facing difficulties due to the economic downturn. Starting June 30, 26 savings banks will offer "HaeSsalLoan Plus," a financial product designed for low-income individuals.

HaeSsalLoan Plus is a guaranteed policy loan provided through a business agreement between the Korea Federation of Credit Guarantee Foundations and financial institutions serving low-income individuals. It offers self-employed individuals loans at a low interest rate in the mid-5% range.

Eligible applicants include low-income self-employed individuals with an annual income of 35 million won or less, as well as low-credit self-employed individuals with an annual income of 45 million won or less and a personal credit score (based on NICE standards) of 744 or below. The maximum loan amount is 20 million won for operating funds and 50 million won for start-up funds. However, the loan cannot be used to refinance existing loans. The repayment terms are a one-year grace period followed by four years of equal principal installment payments.

Oh Hwagyeong, Chairman of the Korea Federation of Savings Banks, stated, "It is very meaningful that savings banks are able to offer HaeSsalLoan Plus to help alleviate the difficulties faced by self-employed individuals. As a financial institution serving low-income individuals, we will continue to faithfully fulfill our social role by expanding the supply of policy-based financial products for low-income groups."