Kakao Bank Signs 'Interest Support Guaranteed Loan' Agreements with All 17 Regional Credit Guarantee Foundations Nationwide

Up to 4 Percentage Points in Interest Savings

Financial Cost Reduction Proven

Kakao Bank announced on August 11 that it has signed agreements with the Gyeonggi Credit Guarantee Foundation and the Jeju Credit Guarantee Foundation to launch the "Interest Support Guaranteed Loan" for local small business financial support in each region. Through this, the company has finalized agreements with credit guarantee foundations in all 17 provinces and metropolitan cities nationwide for the release of interest support products.

윤 Ho-young, CEO of Kakao Bank (from the left), Wi Seong-gon, Governor of Jeju Province, and Oh Kwang-seok, Chairman of the Jeju Credit Guarantee Foundation, are taking a commemorative photo after signing the “Jeju-Type Special Guarantee for Small Businesses in Vulnerable Industries” business agreement on the 10th at the Jeju Credit Guarantee Foundation building in Jeju City. Kakao Bank

The Interest Support Guaranteed Loan is an interest subsidy product for individual business owners, in which a portion of the interest on guaranteed loans is covered by public institutions or local governments. Borrowers can save up to 4 percentage points on interest.

As the target regions have been expanded, the total loan supply has also increased. As of the end of last month, the cumulative supply of Interest Support Guaranteed Loans provided by Kakao Bank reached approximately 1.2 trillion won.

The effectiveness of reducing actual financial costs has also been confirmed. According to Kakao Bank, "Small business owners who used Kakao Bank's Interest Support Guaranteed Loan received an average reduction of 1.99 percentage points in interest rates and executed their loans at an average annual rate of 2.73%," adding, "The total interest saved through this amounts to a cumulative 23.6 billion won."

On August 5, Kakao Bank increased the maximum limit for its 'Individual Business Owner Guaranteed Loan' from 100 million won to 200 million won. The purpose is to strengthen inclusive finance by supporting individual business owners who require larger amounts for business expansion or working capital needs.

Kakao Bank stated, "We will continue to expand financial support for individual business owners to revitalize local economies and strengthen the self-reliance of small businesses."

This content was produced with the assistance of AI translation services.