National Credit Union Federation Launches "Haepssalon Plus" to Strengthen Financial Support for Low-Income and Low-Credit Individuals

Additional interest rate capped at 2.5%p
All self-employed individuals meeting annual income and credit requirements are eligible to apply

▲Exterior view of the National Credit Union Federation of Korea

The National Credit Union Federation of Korea announced on May 19 that it will begin offering the "Haepssalon Plus" financial product for low-income and low-credit self-employed individuals at all of its branches nationwide, aiming to alleviate their financial burdens.

"Haepssalon Plus" is a guaranteed policy loan provided through a business agreement between the National Credit Union Federation of Korea and the Korea Credit Guarantee Foundation, in accordance with the operational guidelines of the Ministry of SMEs and Startups.

Notably, for this product, the guarantee ratio from the Korea Credit Guarantee Foundation has been raised from 95% to 100%. As a result, the loan interest rate applies a maximum additional rate of up to 2.5 percentage points above the base rate, making it possible to obtain loans at lower rates compared to the previous Haepssalon product.

Eligible applicants are low-income self-employed individuals with an annual income of 35 million won or less, or low-credit self-employed individuals with an annual income of 45 million won or less and a personal credit score (based on NICE standards) of 744 points or below. Operating funds can be borrowed up to 20 million won, and startup funds up to 50 million won. However, the loan cannot be used to refinance existing loans. The repayment terms are equal principal installments over four years, following a one-year grace period.

Cho Yongrok, Head of the Financial Support Division at the National Credit Union Federation of Korea, stated, "We hope that Haepssalon Plus will provide meaningful assistance to self-employed individuals who face difficulties accessing financial services."

Meanwhile, as the Sejong Credit Guarantee Foundation does not operate Haepssalon Plus, credit unions in the Sejong region are excluded from offering this product.

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