Gwangju Bank Implements Second Loan Program for Small Business Owners Affected by COVID-19

First Non-Face-to-Face Application Service Implemented by Regional Banks

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Bank (President Song Jong-wook) announced on the 3rd that it will implement the ‘Second Financial Support Loan for Small Business Owners’ and, as the first local bank, provide a non-face-to-face service that allows loan applications without visiting the bank.

The ‘Second Loan for Small Business Owners’ is a government policy product that supports emergency operating funds based on credit guarantee certificates from the Credit Guarantee Fund for individual business owners struggling due to the impact of ‘COVID-19’.

Eligible businesses must have been operating for more than six months from the start date of the business, but companies that benefited from the first small business owner program cannot apply.

The loan limit is 10 million KRW per business, the loan period is 5 years (2 years grace period, 3 years installment repayment), and the interest rate is fixed, ranging from a minimum annual rate of 2.9% to a maximum of 4.0%, depending on the credit rating.

In particular, Gwangju Bank is the first local bank to implement a non-face-to-face service that allows loan applications not only by visiting branches but also through mobile web banking.

Among the submitted documents, essential documents such as business registration certificates, VAT certificates, and national and local tax payment certificates can be submitted through a scraping method (a technology that extracts and processes necessary data, collecting and managing customer information scattered across financial companies, public institutions, government websites, and others). Even if the home or business premises are rented, the essential lease contract can be submitted non-face-to-face by photographing it.

Kim Jae-chun, Head of Sales Promotion Department at Gwangju Bank, said, “We have implemented the non-face-to-face application service as the first local bank to quickly provide financial support to small business owners in the region who are struggling due to ‘COVID-19’,” and added, “In preparation for the post-COVID era, as the representative bank of Gwangju and Jeonnam, we will take the lead in various financial support and activities that coexist and accompany the region with a sense of mission.”

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