KB Kookmin Bank is launching a financial support program aimed at alleviating the interest burden for individual business owners. The initiative will automatically apply a portion of the interest exceeding 5% on business loans toward principal repayment, thereby reducing both interest and principal repayment obligations.
On May 10, KB Kookmin Bank announced that it will implement a program that utilizes the interest amount exceeding 5% on individual business loans to reduce debt burdens. This program is set to begin later this month as part of KB Financial Group's "KB Kookmin Happiness Hope Project." When individual business owners extend their existing loans and the interest rate exceeds 5%, the excess interest amount (up to 4 percentage points) will be automatically applied to the loan principal repayment.
As a result, the loan balance will decrease, which is expected to lessen the future interest burden for individual business owners, helping to alleviate their financial costs. Additionally, there will be no prepayment fees for using the excess interest payment toward principal repayment.
The program is targeted at individual business owners with low credit ratings who hold won-denominated loans with interest rates exceeding 5%. Certain sectors, such as real estate, and customers with overdue loans will be excluded from this initiative.
A representative from KB Kookmin Bank stated, "We expect that more than 10,000 individual business owners will benefit from this program, and we will continue to fulfill our social responsibility through various inclusive finance practices for vulnerable groups."
* This article has been translated by AI.
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