Backed by Korea Inclusive Finance Agency guarantee

[K bank]
[K bank]

K bank announced Wednesday the launch of "Haetsal Loan Youth," a policy loan product aimed at customers aged 34 and under. The product is designed to lower the barriers to policy finance for young people who lack sufficient income or credit history, allowing them to secure funds through a guarantee scheme.

Backed by a guarantee from the Korea Inclusive Finance Agency, the product helps university students and young adults early in their careers manage the financial burden of studies, job preparation and early-stage business ventures. It offers up to 12 million won ($8,930) per borrower.

Applicants must be between 19 and 34 years old and earn no more than 35 million won annually. Eligible borrowers include early-career workers with one year or less of employment at small and medium-sized enterprises, young sole proprietors within their first year of business, university or graduate students, and unemployed youth.

Loan limits vary by purpose. General living expenses requiring no separate documentation are capped at 3 million won per application, while specific-purpose funds — covering residential costs, medical expenses or business operating costs — require supporting documentation and are capped at 9 million won per application.

The loan carries a fixed annual interest rate ranging from 1.9 percent, the minimum applied to socially vulnerable borrowers, to 4 percent, excluding the guarantee fee. The maximum repayment period is 15 years, including any grace period, and there is no early repayment fee.

Early-career workers can complete the entire process — from guarantee application and screening to loan disbursement — through the K bank app. Job seekers and young business owners must first obtain approval through a non-face-to-face guarantee review on the Inclusive Finance Connect app or website before proceeding to loan disbursement via the K bank app.

With this launch, K bank has extended its policy finance support to young borrowers, building on its existing Haetsal Loan General and Haetsal Loan Special products for low-credit customers.

"We want to help young people who are short on funds focus on their studies, job searches and business preparations," a K bank official said. "We will continue to introduce a variety of products to expand inclusive finance for low- and mid-credit borrowers and financially vulnerable groups."


forest@heraldcorp.com