KakaoBank has launched a refinancing service for real estate collateral loans aimed at individual business owners. The initiative is designed to help small businesses consolidate their loans from various financial institutions, thereby reducing their financial burden.
On November 11, KakaoBank announced the introduction of its 'Individual Business Owner Real Estate Collateral Loan Refinancing' service.
This service allows customers currently using loans from other financial institutions to switch to KakaoBank's real estate collateral loan.
Eligible loans for refinancing include individual business owner credit loans, guarantee loans, and real estate collateral loans. Customers can refinance loans that have been in effect for more than one year, and it is possible to consolidate up to five existing loans into one.
The loan conditions are the same as those for existing individual business owner real estate collateral loans. As of today, the interest rate starts at 3.04% per annum, with loans available up to 1 billion won for a maximum term of 20 years. The collateral can include multi-family housing, officetels, and commercial complexes. If there is room in the limit compared to existing loans, borrowers can also increase the loan amount when refinancing.
To simplify the refinancing process, KakaoBank has introduced the industry's first 'Automated Repayment System.' This system allows for the loan amount to be deposited directly into the repayment account of the existing financial institution at the time of refinancing, ensuring that the previous loan is paid off.
The service can be accessed on the KakaoBank individual business owner real estate collateral loan page. During the loan application process, customers can select 'Loan Refinancing' and choose the existing loans they wish to refinance.
A KakaoBank representative stated, "We will expand financial support to provide practical assistance to small business owners."
* This article has been translated by AI.
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