KakaoBank is teaming up with Naver Pay to expand access channels for loans to sole proprietors. Sole proprietors will be able to view and apply for KakaoBank’s real estate collateral loan for sole proprietors through Naver Pay’s loan comparison service.

KakaoBank said on Monday its "real estate collateral loan for sole proprietors" has been added to the "Naver Pay Loan Comparison" service. This marks the first time KakaoBank loan products have joined the Naver Pay Loan Comparison service.

The real estate collateral loan for sole proprietors is a non-face-to-face loan product that can be used for up to 1 billion won for purposes including business operating funds and funds to buy business premises. It provides financing backed by collateral such as apartments, officetels and collective commercial properties, and currently offers interest rates starting in the 2 percent range per year.

The Naver Pay Loan Comparison service will first operate loans secured by apartments and officetels. It plans to expand eligible collateral to collective commercial properties later.

But KakaoBank’s "real estate collateral loan for sole proprietors" applied for through Naver Pay Loan Comparison can be used only for business operating funds. Loans intended as funds to buy business premises for purchasing apartments and villas, among other types of housing, are not available.

Users can view loan products from KakaoBank and other financial firms on the Naver Pay app and website after identity verification and entering personal information.

A KakaoBank official said, "We will continue to provide various innovative financial services to reduce financial burdens for sole proprietor customers and help them raise funds."