Banknotes announce plans to cut interest rates … exemption from guarantee fees for the first year
[서울파이낸스 김현경 기자] Small business owners in limited collective business such as restaurants, cafes, karaoke rooms, and indoor sports facilities will be able to borrow up to 10 million won at an interest rate of 2-4% from January 18 next year.
On the 29th, the Financial Services Commission announced a’customized damage support measures in response to the third corona spread’ containing such details. The Financial Services Commission has newly established a’restricted group and special support program for small business owners,’ which provides an additional loan of up to 10 million won regardless of the use of the existing financial support program for small businesses.
This program provides loans of up to 10 million won in a two-year deferred and three-year installment payment method. The guarantee fee is exempted in the first year and 0.6% of the guarantee fee is applied in the second to fifth years.
The interest rate is applied at the same level (2-4%) as the secondary financial support program for small businesses. Currently, banks are considering autonomously lowering the upper limit of interest rates. The banknote plans to announce a plan to cut interest rates for small business owners on this day.
The targets for support are industries with limited set of social distancing stages 2 and 2.5. The second-stage restricted businesses are △restaurants and cafes, △indoor sports facilities, △norac practice center, △direct sales promotion hall, and △standing performance hall. The social distancing step 2.5 restricted businesses are △restaurants and cafes △esthetics and beauty businesses △PC cafes △entertainment rooms △multi-rooms △study cafes △movies theaters △amusement parks △large supermarkets, department stores, and △lodgings.
Application for the program is scheduled to start on January 18, next year, when the computerization of the bank is completed. Details regarding the implementation of the loan will be provided separately as soon as practical preparation is completed.
Loans can be applied at bank branches and at each bank’s website and application. There are 12 banks available for loans: Kookmin, Nonghyup, Shinhan, Woori, Hana, Gyeongnam, Gwangju, Daegu, Busan, Jeonbuk, Jeju, and Industrial Bank. Of these, non-face-to-face applications can be made at 9 locations including Kookmin, Shinhan, Woori, Hana, Enterprise, Nonghyup, Gwangju, Daegu, and Busan Bank. There are five banks that can apply for and execute loans without face-to-face, including Kookmin, Shinhan, Woori, Enterprise, and Daegu Bank.
When applying for the program, documents such as △Business Registration Certificate △Certificate of VAT Standard △National and Local Tax Tax Payment Certificate △Certified Real Estate Registration (or Lease Agreement) △Income Amount Proof. However, additional documents and procedures necessary for confirming whether or not a small business tenant in the collective restricted business is applicable will be provided after consultation with related ministries and agencies.
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