K Bank said on March 18 it is launching “Sajangnim Loan Refinancing,” a service that allows sole proprietors to easily refinance existing loans via mobile.

Customers can use K Bank’s “Sajangnim Loan Refinancing” to switch existing loans to the bank’s self-employed credit loan (Sajangnim Credit Loan) and self-employed property-backed loan (Sajangnim Property-Backed Loan).

K Bank’s Sajangnim Credit Loan enables refinancing of existing bank loans for sole proprietors at interest rates starting from 4.10 percent a year as of March 18. It lowered interest burdens for small merchants and self-employed people struggling with high rates.

The loan limit is up to 300 million won. Refinancing is possible even if the outstanding balance of existing loans exceeds 100 million won. It also supports “increased loans” that allow customers to secure additional funds at the same time as refinancing, improving convenience in arranging business funding.

K Bank also built the mandatory post-review process for checking the use of funds for self-employed credit loan refinancing on a non-face-to-face basis. If a business loan exceeds a certain amount, borrowers must complete a purpose verification procedure, which can be handled easily within the app.

K Bank also provides, on the “Sajangnim Loan Refinancing” page, the self-employed property-backed loan product “Sajangnim Property-Backed Loan Refinancing,” which it said is the only banking-sector product operated 100 percent on a non-face-to-face basis.

“Sajangnim Property-Backed Loan Refinancing” offers interest rates starting from 3.24 percent a year and allows borrowing of up to 1 billion won within the scope of existing secured loans. It also allows refinancing not only bank loans but also loans from mutual finance, savings banks, card companies and capital firms.

A K Bank official said, “Based on the banking sector’s lowest-level interest rates and K Bank’s non-face-to-face financial know-how, we prepared this so that small merchant customers can easily and quickly reduce their interest burden.” The official added, “We will continue to expand various benefits and services for sole proprietor customers.”