“KakaoBank Achieves Nearly 4 Trillion Won in Cumulative Supply for Individual Business Loans in Three Years
KakaoBank announced that it has reached a cumulative supply amount of nearly 4 trillion won for its individual business loan services, approximately three years after their launch.
According to KakaoBank, as of the end of last month, the ‘Individual Business Credit Loan’ and ‘Individual Business Guarantee Loan’ provided through its individual business banking, launched in November 2022, reached cumulative totals of 1.85 trillion won and 1.92 trillion won respectively. Combined, these figures amount to about 4 trillion won.
As of the end of last month, 64% of all individual business loan customers were reported to be in the medium to low credit range. Notably, the proportion of medium to low credit customers was even higher for the guarantee loans. KakaoBank has been supporting up to half of the guarantee fees since the launch of the guarantee loans, having paid a total of 21.1 billion won on behalf of its customers up until last month. Additionally, they have been expanding convenience services for small business owners, such as increasing the types of guarantee loan products and VAT boxes.
Customers who utilized the ‘Interest Support Guarantee Loans’ benefited from an interest reduction of approximately 2.25 percentage points as of last month, owing to interest supplementation support. These loans were executed at an average annual interest rate of 2.26%, resulting in a cumulative interest saving of 22.3 billion won.
KakaoBank is also accelerating the release of innovative services for individual business owners. Notable initiatives include the comprehensive inquiry service for policy fund loan products tailored to customer needs and industry-specific credit evaluation models for small business owners. Application of KakaoBank’s own alternative credit evaluation model for small businesses has resulted in an additional approval for approximately 1 out of every 7 loan applications, including those that were initially rejected.
A KakaoBank representative stated, ‘We will continue to implement inclusive finance by providing practical support and convenience services to alleviate the financial burden on small business owners.'”