Jungnang-gu Provides Interest-Free Loans of 20 Million Won per Small and Medium Enterprise and Small Business

Published 29 Apr.2021 07:32(KST)

Loan support of 20 billion KRW for local SMEs and small business owners with personal credit scores of 595 (grade 7) or higher... Up to 20 million KRW per company, full loan interest covered by the district for the first year after loan... Applications accepted at partner banks from April 30 until funds are exhausted

Jungnang-gu Provides Interest-Free Loans of 20 Million Won per Small and Medium Enterprise and Small Business

[Asia Economy Reporter Jong-il Park] Jungnang-gu (District Mayor Ryu Kyung-gi) is providing interest-free loans worth 20 billion KRW to support small and medium-sized enterprises (SMEs) and small business owners in the area who are struggling financially due to the prolonged COVID-19 pandemic.

In particular, for the first year after the loan is issued, the district will cover all interest payments to reduce the burden on small business owners and revitalize the local economy.

A variable interest rate will apply after this period.

The support targets business owners whose workplaces are located in Jungnang-gu, have been registered for more than six months, and have a personal credit score of 595 (grade 7) or higher. The guarantee screening will be conducted under relaxed criteria compared to previous standards.

With a guarantee fee of 0.5% and repayment terms of a 1-year grace period followed by 4 years of equal installments, each company can receive up to 20 million KRW.

The application period starts from April 30 and continues until funds are exhausted.

Companies wishing to apply should bring identification, a copy of their business registration certificate, and other required documents, and visit the designated banks on weekdays from 9 a.m. to 4 p.m. to apply.

The designated banks are Woori Bank (Jungnang-gu Office Branch, Jungnanggyo Financial Center, Taereung Station Branch, Junghwa-dong Branch), Shinhan Bank (Sinnae-dong Branch), and Hana Bank (Myeonmok-dong Branch, Mangwoo-dong Branch, Sinnae-dong Branch, Taereung Branch).

For branch-specific contact information and further details, please refer to the Jungnang-gu Office website.

Ryu Kyung-gi, Mayor of Jungnang-gu, said, “We hope this loan support will revive the weakened local economy and resolve the financial difficulties of SMEs and small business owners,” adding, “We will prepare various support policies to promote the management stability of small business owners in the region.”