Small Enterprise and Market Service Adds Credit Unions as Participating Institutions for Small Business Refinancing Loans

[Financial News] The Small Enterprise and Market Service selected credit unions as new financial institutions to handle small business refinancing loans.
According to the Small Enterprise and Market Service on the 17th, the small business refinancing loan program is designed to ease the burden of repaying high-interest debt and reduce financial costs for small business owners with low or medium credit scores. It converts high-interest loans with annual rates of 7% or higher, as well as bank loans facing difficulties with maturity extensions, held by small business owners with low or medium credit scores (an NCB score of 919 or below) into loans with a fixed annual interest rate of 4.5% and a 10-year extended installment repayment period.
Credit unions have about 1,600 branches in areas densely populated by small businesses, including traditional markets and shopping districts. They are expected to help improve access to policy funds.
Credit unions plan to begin executing the refinancing loans in earnest in mid-November, after completing preparations such as building the necessary infrastructure.
In Tae-yeon, head of the Small Enterprise and Market Service, said, "I hope many small business owners struggling with high interest rates will take interest in the program and apply."
[email protected] Kim Hyun-cheol Reporter