Woori Bank Partners with Shinbo to Launch 'Ultra-Long-Term Guarantee Automatic Renewal Loan'

[Asia Economy Reporter Song Seung-seop] Woori Bank announced on the 14th that it has signed a business agreement with the Korea Credit Guarantee Fund for the ‘Ultra-long Automatic Extension Loan Guarantee’ and launched a new loan product.

The Ultra-long Automatic Extension Loan Guarantee is a guarantee product that automatically extends the guarantee period on the condition that 10% of the initial loan amount is repaid annually. Previously, customers had to visit the guarantee institution every year to extend the guarantee certificate expiration in order to extend the loan period. With this agreement, customers can automatically extend the guarantee period up to 10 years without visiting the guarantee institution. The target customers are general small and medium-sized enterprises, including individual business owners, with a loan limit of up to 300 million KRW per company.

According to the agreement, the newly launched product has a maturity set in one-year increments. This means it can apply relatively lower interest rates compared to loans handled as long-term. It is also structured to reduce the burden of principal repayment. Customers are exempted from early repayment penalties to freely repay the loan during the loan period.

A Woori Bank official stated, “Through this business agreement and the launch of the new product, we expect to provide stable and long-term financial support services to customers who are facing difficulties due to the spread of COVID-19.”

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