K Bank is expanding the collateral options for real estate secured loans aimed at small business owners to include commercial properties and officetels.
On October 14, K Bank announced that it will broaden the scope of its 'CEO Real Estate Secured Loan' for small business owners.
Previously, only apartments with assessed values from the Korea Real Estate Agency were accepted as collateral, but now the range will include multi-family homes and commercial real estate. Properties that can be verified through the Korea Real Estate Agency, KB Real Estate, and Automated Valuation Model (AVM) will also be eligible, including collective commercial properties and officetels.
The purpose of the loans has also been expanded from working capital to include facility funds. Borrowers can refinance facility loans obtained from other banks, and new facility loans for purchasing business premises are now available.
The maximum limit for facility loans is set at 1 billion won. The loan term for new loans can be up to 20 years, while refinancing existing loans can extend up to 15 years. Both new and refinancing loans can choose a grace period of up to three years.
The types of businesses eligible for these loans now include real estate rental businesses, although residential rental businesses are excluded. Loans for rental purposes will be subject to related criteria, such as the Rental Income to Interest Ratio (RTI).
K Bank plans to strengthen its financial services for small business owners through this expansion of loan eligibility.
A K Bank representative stated, "By expanding the collateral options and loan purposes, we can better meet the diverse financial needs of small business owners. We also plan to launch loans for small and medium-sized enterprises next year, further advancing our corporate finance initiatives."
* This article has been translated by AI.
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