Hana Bank will provide a total of 1.3 trillion won in inclusive finance support for small merchants, self-employed people and faithful borrowers. It will launch a new locally focused loan product for small merchants and expand eligibility and limits for existing products for faithful borrowers.

Hana Bank said on Sunday it will operate two new inclusive finance products worth a total of 1.3 trillion won through the launch of a local small merchant support product, the Hana Ppunin Sajangnim Loan, and an expanded revamp of the Hanadeo Soho Seonggong Sadari Loan for faithful borrowers.

The Hana Ppunin Sajangnim Loan supports emergency management-stabilisation funds for locally based businesses such as traditional markets and alleyway commercial districts. Loans of up to 10 million won are available without collateral or guarantees, and Hana Bank will run the product at a 규모 of 300 billion won from July 1 through the end of this year.

Hana Bank will offer a special rate discount of 0.3 percentage point to business owners aged 39 or younger, businesses run by representatives aged 65 or older, start-ups less than three years old, businesses with declining sales, merchants affiliated with Onnuri gift certificates, and businesses using public delivery apps. It plans to offer a minimum interest rate in the mid-4 percent range per year.

Loan screening will be handled at branch level at the discretion of branch managers, without a headquarters review. The structure is aimed at quickly supplying operating funds to small self-employed businesses near branches.

The package also includes benefits for faithful borrowers. Small merchants who repay faithfully for one year after the loan is executed, with 10 or fewer overdue days, will receive interest cashback that returns 10 percent of interest paid in cash. The bank will also support discount coupons from major home appliance companies that can be used when purchasing electronics needed for business operations.

Hana Bank also expanded and revamped the Hanadeo Soho Seonggong Sadari Loan, launched in May. Previously, it targeted borrowers scheduled to repay Hana Bank guarantee-backed loans, but it will now broaden eligibility to faithful borrowers making instalment repayments of principal and interest. It also raised the support limit to 1 trillion won from 300 billion won.

The Hanadeo Soho Seonggong Sadari Loan can be used up to 10 million won without collateral or guarantees. The interest rate is in the mid-4 percent range per year, and early repayment fees are waived. It also allows a revolving credit line structure, to help meet funding needs that arise during business operations.

Seo Yu-seok (서유석), deputy head of Hana Bank's Corporate Group, said the bank sought to expand finance's leading role so that small merchants and self-employed people who continue their businesses faithfully in a difficult business environment can make another leap. He said the bank will continue to expand practical inclusive finance.