Toss Bank said on Tuesday it has launched a refinancing service in line with the implementation of a loan switching programme for sole proprietors. The service allows sole proprietors using business loans at other financial institutions to move their loans to Toss Bank.

Toss Bank also launched 2 products for the refinancing service. The professional sole proprietor refinancing loan is available up to 500 million won within the existing loan balance, while the sole proprietor credit refinancing loan is available up to 100 million won.

Both products offer a choice of bullet repayment at maturity or equal principal and interest instalments. For bullet repayment, the loan term is 1 year and can be extended up to 10 years. Equal principal and interest instalments can be set for 1 to 5 years. There is no early repayment fee. Interest rates are variable based on AAA-rated financial bonds, and the loans are available on credit without collateral.

Toss Bank has been expanding financial services for sole proprietors this year, including launching a dedicated banking service for sole proprietors in January and introducing loans for professional sole proprietors in February.

A Toss Bank official said, "We are continuously expanding services from bank accounts to loans so sole proprietors can focus on their core business instead of complex financial tasks." The official added, "We will continue to strengthen productive finance that contributes to lowering financial costs and improving convenience for sole proprietors."