Shinhan Bank will provide agreement-guarantee loan support worth 7.5 billion won to mid-to-low credit companies and online sellers in the Incheon area.

Shinhan Bank said on May 18 it signed an "inclusive finance specialised agreement guarantee" with the Incheon Credit Guarantee Foundation and will supply guaranteed loans totalling 7.5 billion won to small and micro businesses in Incheon.

The agreement guarantee was designed to support mid-to-low credit small and micro businesses based in Incheon, as well as companies engaged in e-commerce.

Shinhan Bank plans to reduce the funding burden for mid-to-low credit micro business owners who face difficulties using financial services due to credit issues. It also plans to help online sellers secure stable working capital.

Support will be provided through new working-capital loans arranged by Shinhan Bank. The maximum limit is 50 million won per company, and the guarantee ratio will be 100 percent, providing a full guarantee. An annual guarantee fee rate of 0.8 percent will apply.

The repayment method is structured to allow borrowers to choose either a four-year instalment repayment after a one-year grace period or a lump-sum repayment at maturity, reducing their repayment burden.

A Shinhan Bank official said the programme supports easing working-capital burdens for mid-to-low credit companies and online sellers in Incheon. The official said the bank will continue financial support that small and micro businesses can feel, in cooperation with regional credit guarantee institutions.