KakaoBank's Outstanding Sole Proprietor Loan Balance Surpasses 4 Trillion Won

Achieved in Just 3 Years and 11 Months

All Processes Available Fully Online

The outstanding balance of KakaoBank's loans for sole proprietors has surpassed 4 trillion won.

According to KakaoBank on October 2, the outstanding balance of loans for sole proprietors has been steadily increasing since its launch in November 2022. After reaching 1 trillion won in just 1 year and 2 months, 2 trillion won in 2 years and 3 months, and 3 trillion won in 3 years and 1 month, the total exceeded 4 trillion won after 3 years and 11 months.

KakaoBank's sole proprietor loan product is designed for easy and speedy application without the need for complicated document submission procedures. Through scraping technology, every step from document submission to post-screening processes can be conducted entirely online.

According to the disclosure by the Korea Federation of Banks, the average interest rates for new sole proprietor loan issuances at the end of August at KakaoBank were 5.66% for unsecured loans, 3.91% for guaranteed loans, and 3.48% for mortgage-backed loans. A KakaoBank representative explained, "This is a very low level among domestic banks."

Two out of every three customers for sole proprietor loans were identified as mid- to low-credit borrowers. KakaoBank has been working to expand inclusive finance for mid- and low-credit sole proprietors by advancing its credit evaluation models to comprehensively assess business capabilities.

Next month, the bank plans to introduce a refinancing product that will allow customers who are currently using sole proprietor loans to switch to loans with lower interest rates, specifically to help small business owners struggling with high rates.

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