"Refinance Your High-Interest Loans"... Toss Bank's 'Sajangnim Debt Consolidation Loan' Pre-Application

Fixed Interest Rate Up to 5.5% Applied for 2 Years

[Asia Economy Reporter Minwoo Lee] Toss Bank is launching a refinancing loan service that allows individual business customers to switch to loans with lower interest rates.

On the 22nd, Toss Bank announced that it is accepting pre-applications for the "COVID-19 Business Owner Refinancing Loan" service. This product offers a fixed interest rate of up to 5.5% for two years, and if pre-application is made by the 29th, loans will be processed sequentially starting from the 30th. From next month, applications will be accepted using a five-day rotation system.

The service targets individual business owners who have suffered losses due to COVID-19 and have received disaster relief funds such as loss compensation or have had loan maturity extensions or repayment deferrals, and who are currently conducting normal business operations. Refinancing is available only for loans issued by May 31.

The loan limit ranges from a minimum of 10 million KRW to a maximum of 50 million KRW. The repayment condition includes a two-year grace period followed by installment payments over three years. After two years, during the third to fifth years, the agreed interest rate capped at the bank bond (credit rating AAA standard) one-year rate plus 2.0 percentage points (p) will apply. Additionally, a 1.0% annual credit guarantee fund fee must be paid in a lump sum. Furthermore, all fees related to repayment of existing loans as well as early repayment fees for the new loan are fully waived.

Applications can be made by accessing the Toss app, selecting 'Find Products' on the Toss Bank home screen, then 'Switch to Toss Bank,' and choosing 'Pre-book Refinancing Loan for COVID-19 Affected Business Owners.'

A Toss Bank official stated, "We are the first internet-only bank to participate in the refinancing loan service with the Korea Credit Guarantee Fund," adding, "Since this is a fixed interest rate product, it is not affected by interest rate hikes and will be advantageous for customers currently using high-interest loan products."

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