Hana Bank Applies Maximum Annual Interest Rate Cap of 2.9% on Second Loans for Small Business Owners Until End of June

[Asia Economy Reporter Kim Min-young] Hana Bank announced on the 22nd that it will set and apply a maximum annual interest rate cap of 2.9% for the 'Second Financial Support Loan for Small Business Owners' until the end of June to support small business owners struggling due to the novel coronavirus infection (COVID-19).

The Second Financial Support Loan for Small Business Owners began accepting applications on the 18th and will be implemented starting from the 25th. The loan limit is a fixed amount of 10 million KRW, with a 2-year grace period followed by a 3-year equal principal repayment (monthly) condition.

The loan interest rate consists of a base rate selectable between the 3-month CD or 6-month financial bond rate, plus an additional rate based on the borrower's credit rating. For loans processed until the end of June, a maximum annual interest rate cap of 2.9% will be set and applied until the first interest rate adjustment period arrives. After the initial interest rate adjustment period, the loan interest rate will fluctuate only by the amount of change in the base rate, thereby reducing the interest burden on small business owners facing management difficulties due to COVID-19.

A Hana Bank official stated, “We decided to set a cap on the maximum interest rate to provide practical financial support to small business owners struggling due to COVID-19,” and added, “We will continue to introduce various financial products and services that can help support small business owners.”

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