Banksalad, a MyData company, said on Tuesday it will launch a "refinancing loan for sole proprietors" service.

Banksalad has laid the groundwork for business lending through efforts including participation in a MyData-based infrastructure project via the building of a dedicated credit-scoring model for small merchants, and a "sole proprietor AI credit-grade inquiry" service.

It plans to use MyData technology to tap a range of data beyond credit scores, including actual sales flows, business history and tax payment records, to identify hidden strong business owners and to ease interest burdens for mid-to-low credit borrowers.

Banksalad joined the refinancing loan infrastructure in 2023, and said that among customers using its existing loan-switching service, the one with the largest cut in interest rate achieved interest savings of 13.37 percentage points.

A Banksalad official said that as loan switching becomes possible for sole proprietors as well as individuals, it can reduce the interest burden for business borrowers. The official added that the company will continue to expand inclusive finance to lower the practical interest burden for sole proprietors, who have a high share of mid-to-low credit borrowers, and to help busy owners enjoy a reasonable financial environment.