Shinhan Bank Launches New Loan Product Worth 1 Trillion Won for COVID-19 Affected Companies

New Loan Product to Support SMEs and Small Business Owners Affected by COVID-19 Scheduled for Release
6-Month Interest Payment Deferral to Help Overcome Funding 'Borikkogae' Challenges
Up to 2% Annual Preferential Interest Rate Applied per Customer

[Asia Economy Reporter Kangwook Cho] Shinhan Bank announced on the 19th that it plans to launch a new loan product worth 1 trillion won to support small and medium-sized enterprises (SMEs) and small business owners affected by 'COVID-19.'

The new loan product, to be launched in early next month, allows a six-month grace period on interest payments after the loan is issued. This is part of the 'COVID-19' financial support measures promoted at the group level by Shinhan Financial Group Chairman Jo Yong-byeong. Shinhan Bank aims to enable SMEs and small business owners facing operational difficulties due to 'COVID-19' to use loans without interest burden initially and repay the interest in installments later.

Considering that many SMEs and small business owners are temporarily struggling due to the recent 'COVID-19' situation, Shinhan Bank prepared this product to help them overcome the 'bottleneck' in funding.

The new loan product allows SMEs and small business customers affected by 'COVID-19' to borrow up to 500 million won. The interest deferred for six months after the loan issuance can be freely paid over the following year. The loan term is up to two years, and preferential interest rates of up to 2% per annum are applied depending on the customer.

A Shinhan Bank official said, "We plan to provide practical benefits to SMEs and small business customers facing financial difficulties and support them to overcome these challenging times together," adding, "We will continue to strive to build a win-win cooperation ecosystem between companies and banks and fulfill our social responsibilities."

This content was produced with the assistance of AI translation services.