Loan ceiling raised to 20 million won; 50% guarantee fee subsidy, credit line fee waived
Shinhan Bank announced Tuesday it will provide a total of 300 billion won ($218 million) in contactless loans to small business owners in Seoul, in partnership with the Seoul Metropolitan Government and the Seoul Credit Guarantee Foundation.
The bank signed an agreement for the "Seoul-type Small Business Ansim Account No. 4 Support Project" and will begin accepting loan applications Thursday.
Eligible applicants are sole proprietors with a business registered in Seoul who have been operating for at least one year and hold a NICE credit score of 600 or above. They must also have recorded combined sales of at least 2 million won over the past three months, or declared annual sales of at least 10 million won over the past year.
Loans will be offered as a revolving credit line. Starting with this fourth round, the maximum credit limit has been raised to 20 million won, up from previous rounds. Existing Ansim Account holders may apply for additional funds within the 20 million won total ceiling, up to the amount not yet utilized. Loans carry a one-year term and may be extended annually for up to five years total.
Applications can be submitted through the Seoul Credit Guarantee Foundation's mobile app. Customers who receive guarantee approval can then complete the loan process through Shinhan Bank's mobile app, Shinhan Super SOL, without visiting a branch. During the first week of applications — Thursday through Sept. 9 — a rotating five-day system based on the last digit of the applicant's birth year will apply; from Sept. 10, anyone may apply.
To ease the financial burden on small business owners, Shinhan Bank will cover 50 percent of the initial guarantee fee and waive the credit line arrangement fee entirely. In addition, the bank is expanding support for sole proprietors with limited access to finance, drawing on a proprietary credit-scoring model developed specifically for small businesses.
"As the official depository bank of Seoul, we are actively participating in financial policy efforts alongside the city to support the stable management of small businesses," a Shinhan Bank official said. "We will continue to expand tangible financial benefits that small business owners can feel, contributing to the vitalization of the local economy."
forest@heraldcorp.com
