Shinhan Bank Provides 7.5 Billion Won in Guaranteed Loans to Incheon SMEs

Shinhan Bank announced on May 18 that it will provide a total of 7.5 billion won in guaranteed loans to small and medium-sized enterprises (SMEs) and small businesses in the Incheon area.

To support mid- to low-credit companies and e-commerce businesses, Shinhan Bank has signed a 'Specialized Inclusive Finance Guarantee Agreement' with the Incheon Credit Guarantee Foundation.

The initiative aims to reduce the financial burdens faced by small businesses with mid- to low-credit ratings and to provide stable operating funds for online sellers experiencing cash flow issues due to delayed settlements.

The loan limit for each business is set at a maximum of 50 million won, targeting new operating fund loans offered by Shinhan Bank. The guarantee will cover 100% of the loan amount, with a guarantee fee rate of 0.8% per year. The loans will be structured with a one-year grace period followed by four years of installment repayment or a lump-sum repayment at maturity.

Currently, Shinhan Bank serves as the primary bank for Incheon City, with a new primary bank to be designated in August. This financial support for SMEs in Incheon is expected to have a positive impact on the upcoming selection of the primary bank.

A Shinhan Bank official stated, "We will continue to collaborate with local credit guarantee institutions to provide financial support that small businesses and SMEs can truly feel in their operations."