KakaoBank said on 17 it will cut interest rates on its “real estate-backed loans for sole proprietors” by as much as 0.75 percentage points to ease financing burdens for small business owners.
The bank said it will lower loan rates by up to 0.60 points and expand its preferential rate discount to 0.30 points a year from 0.15. With both applied, the minimum rate is 2.895% a year.
KakaoBank said it is the only financial firm offering rates in the 2% range among banks providing real estate-backed loans to sole proprietors.
KakaoBank launched the product in October last year. It can be used non-face-to-face for up to 1 billion won for purposes including business operating funds and purchasing a business site. Some industries, including residential building development and supply and residential building rental, are excluded.
“We further lowered rates on our real estate-backed loans for sole proprietors to expand financial support for small business owners struggling to raise funds,” KakaoBank said, adding it will continue to introduce innovative financial services to improve convenience for sole proprietor customers.
* This article has been translated by AI.
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