Gyeonggi-do Lowers Environmental Conservation Fund Loan Interest Rate for SMEs to 1.5% Per Year

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province is lowering the loan interest rate of the Environmental Conservation Fund for small and medium-sized enterprises (SMEs) from 2.2% per annum to 1.5%, reducing the burden of interest and promoting the environmental industry.

Gyeonggi Province finalized the "2020 Gyeonggi Province Environmental Conservation Fund Loan Support Change Plan" containing these details and announced it in the Gyeonggi Province Gazette on the 25th.

The loan support target of the Environmental Conservation Fund is SMEs with business sites in the province as of the application date, covering 20 types of environmental industry promotion projects and environmental pollution prevention facility installation projects under the "Ordinance on the Establishment and Operation of the Gyeonggi Province Environmental Conservation Fund."

This year's support scale is 3.5 billion KRW, with a loan limit of up to 1 billion KRW per company. The loan interest rate, originally 2.2% (fixed rate) in 2020, is reduced by 0.7%, and from July, a 1.5% (fixed rate) will be applied.

The loan period is 8 years (3 years grace period, 5 years equal installment repayment), and the handling banks are Shinhan Bank, IBK Industrial Bank of Korea, NH Nonghyup Bank, Sh Suhyup Bank, SC First Bank, Korea Citibank, Woori Bank, and KEB Hana Bank.

However, companies that are judged to have difficulty in loan repayment, companies that have completed installation or are operating the target facilities, companies recommended for loans for the target facilities by other institutions, companies that applied by false or fraudulent methods, and companies belonging to business groups designated by the Fair Trade Commission as restricted in mutual investment or debt guarantees are excluded from loan support.

Applications for the 7 types of environmental industry promotion projects can be made to the Gyeonggi Province Environmental Policy Division (031-8008-3532), and applications for the 13 types of environmental pollution prevention facility installation projects can be made to the environmental department of the relevant city or county where the business site is located.

Park Jong-il, head of the Environmental Policy Division of the province, explained, "As the economic downturn continues due to COVID-19, we lowered the loan interest rate to reduce the interest burden on companies."

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