Guro-gu Provides 20 Billion Won Interest-Free Loans to Small Business Owners

Up to 20 Million KRW per Company for Over 1,000 People... City to Fully Support Interest for 1 Year Until Funds Are Exhausted

[Asia Economy Reporter Jong-il Park] Guro-gu (Mayor Lee Seong) is launching an interest-free loan support program worth a total of 20 billion KRW for about 1,000 small business owners struggling due to COVID-19.

The support targets small business owners who have had a business location in Guro-gu and have been operating for more than six months.

The loan limit is up to 20 million KRW with a guarantee fee of 0.5%, a loan period of 5 years, and repayment conditions of a 1-year grace period followed by 4 years of equal installments. Applicants must have a personal credit score of 595 points (formerly grade 7) or higher.

Guro-gu will cover the full loan interest for one year until the funds are exhausted. After that, an interest rate of 2-3% will apply.

To this end, Guro-gu signed a low-interest loan support agreement for small business owners with Shinhan, Woori, Hana banks, and the Seoul Credit Guarantee Foundation. Accordingly, the district contributed 850 million KRW, Shinhan Bank 300 million KRW, and a total of 1.6 billion KRW was provided as guarantee funds, setting the loan limit at 20 billion KRW (12.5 times the contribution).

When applying for a special guarantee at designated local branches of Shinhan, Woori, and Hana banks, the bank will approve the loan considering the applicant’s guarantee limit and other factors.

Those who wish to apply should visit the loan handling branch of the contracted banks with the application form, business registration certificate, financial transaction confirmation, and other required documents. For more details, refer to the news section on the district office website.

A Guro-gu official said, “We hope this interest-free loan support will help small business owners going through difficult times,” and added, “We will continue to provide various support measures to revitalize the local economy.”

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