KakaoBank Launches "Real Estate Secured Loan for Sole Proprietors" for Small Business Owners

Maximum Limit of 1 Billion Won, Minimum Interest Rate of 3.776% Per Annum, Loan Terms Up to 20 Years
Wide Range of Real Estate Accepted, Including Apartment Complexes, Officetels, and Commercial Complexes

KakaoBank announced on October 21 that it will launch a "Real Estate Secured Loan for Sole Proprietors" targeting small business owners. With this new product, sole proprietors can now choose from a wider range of offerings at KakaoBank, including credit loans, guarantee loans, and real estate secured loans.

The KakaoBank Real Estate Secured Loan for Sole Proprietors provides up to 1 billion won at annual interest rates ranging from 3.776% to 6.062% (as of October 21, 2025). Borrowers can select from a variety of uses, such as business operating funds or funds for purchasing business premises.

The loan term can be set for up to 20 years depending on the purpose of the funds. For business operating funds, borrowers can choose between 5 or 10 years, while for purchasing business premises, they can select either 15 or 20 years. Repayment can be structured as either equal principal and interest installments or equal principal installments. For loans intended for business operating funds, even if the collateral already has a senior mortgage or other rights established, applications for a subordinated loan are possible. The eligibility and limit for such loans will be determined based on the type and amount of the senior loan.

The loan process is also simple. After entering the applicant's information and collateral real estate details, borrowers can quickly check the estimated limit and interest rate through a preliminary assessment. Following the loan application, the review process will be completed within a maximum of two weeks, after which borrowers will be notified of the loan approval status.

A variety of collateral types are accepted, including apartment complexes, officetels, and commercial complexes. If market value cannot be confirmed through KB or AVM price indices, a separate appraisal will be conducted to determine the value. KakaoBank has signed a business agreement with the Korea Association of Property Appraisers and has linked its electronic system for sharing appraisal information, ensuring fast and accurate property valuation.

To commemorate the launch of this service, KakaoBank has prepared special interest rate discounts and a support fund lottery event. Customers who take out a Real Estate Secured Loan for Sole Proprietors by March 31 of next year will receive a preferential interest rate benefit of an annual 0.15 percentage points. In addition, by November 30, 100 customers who receive this loan will be selected by lottery to receive 500,000 won each in support funds.

KakaoBank stated, "We launched this product to expand financial support for small business owners who are struggling to secure funds," adding, "We will continue to introduce a variety of innovative financial services to enhance convenience for our sole proprietor customers."