K Bank will take part in the 'Ansim account' overdraft credit-line programme dedicated to small business owners in Seoul.

K Bank said on Wednesday it would participate in Seoul's 'Seoul Ansim account No. 3 support programme'.

The Ansim account is a financial support programme using an overdraft credit-line format that Seoul introduced last year for self-employed people in the city, the first such programme nationwide. This year, 6 banks including K Bank will take part, and it will start on March 19. In the first half, about 20,000 people will receive support through 200 billion won, and a total of 500 billion won is expected to be supplied over the year.

The loan limit is up to 10 million won per person, and customers can freely deposit and withdraw within the limit. The loan rate is about 4.80 percent a year, lower than average card-loan rates in the 14 percent range, and is expected to reduce interest burdens for small business owners.

Eligible applicants are small and medium-sized enterprises and small business owners with workplaces in Seoul who meet these requirements: more than 1 year in business; total sales of at least 2 million won over the past 3 months or annual sales of at least 10 million won; and a personal credit score of at least 600 (NICE standard) for the representative.

For youth business owners aged 39 and under with at least 3 years in business, some screening requirements related to existing loans are eased.

Ahead of the product launch, K Bank is also running an event through March 18 to provide coffee coupons to 2,000 customers selected by lottery among those who apply for Ansim account advance notifications.

K Bank will also pay a mutual-growth support grant of up to 3 million won to 1,000 customers selected by lottery among those who open a Seoul Ansim account through K Bank. The support will be: first prize (1 person) 3 million won; second prize (2 people) 1 million won; third prize (20 people) 100,000 won; fourth prize (100 people) 30,000 won; and fifth prize (877 people) 10,000 won.

A K Bank official said the bank joined the programme to provide practical financial benefits to small business owners and self-employed people in Seoul struggling with high inflation and an economic slowdown. The official said K Bank would continue to take the lead in practising inclusive finance for small business owners through innovation in non-face-to-face finance.