Saemaul Geumgo will provide a total of 1.1 trillion won in loans to social enterprises, cooperatives, local small businesses, and vulnerable groups. This initiative aims to enhance inclusive finance by expanding funding for borrowers in financial blind spots.
The Saemaul Geumgo Central Association announced on August 31 that it will launch a special guarantee loan product for social solidarity economy organizations starting September 1.
This product will be implemented through a contribution of 100 billion won annually over five years, totaling 500 billion won, from the Saemaul Geumgo Central Association from this year until 2030.
The Credit Guarantee Foundation will issue guarantees based on the Central Association's contributions, allowing Saemaul Geumgo branches nationwide to provide loans totaling 1.1 trillion won, with the government covering the interest rate differences.
Notably, the guarantee ratio for individual loans from the Credit Guarantee Foundation has been increased to a maximum of 100%, reducing the lending burden on Saemaul Geumgo. This allows financial institutions to extend funds to borrowers with relatively low credit ratings or insufficient collateral.
The initial target beneficiaries include social enterprises, cooperatives, village enterprises, self-sustaining businesses, and consumer cooperatives. Saemaul Geumgo plans to gradually expand the scope of special guarantee loan recipients to include local small businesses, vulnerable groups, and borrowers outside the capital region.
A representative from the Saemaul Geumgo Central Association stated, "The launch of this special guarantee loan product symbolizes a significant step in Saemaul Geumgo's commitment to inclusive finance. We aim to become a more trusted financial cooperative by actively supporting financially marginalized groups and strengthening community finance."
* This article has been translated by AI.
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