IBK Industrial Bank of Korea will provide a total of 1 trillion won in fixed-rate loans for mid and low credit small and medium-sized enterprises. The loan limit per company is 1 billion won for working capital and 4 billion won for facilities funding.

IBK Industrial Bank of Korea said on Aug. 3 it launched a fixed-rate specialised product for mid and low credit SMEs called “HopeOn Safe Fixed-Rate Loan.”

The product was designed to cut financing costs and improve funding stability for mid and low credit SMEs, whose interest repayment burdens have increased due to rising interest rates.

The loan limit per company is up to 1 billion won for working capital and up to 4 billion won for facilities funding. It offers an interest-rate discount of up to 1.0 percentage point within the range of the gap between fixed and variable rates. If the gap between fixed and variable rates is less than 1.0 percentage point, the actual discount is limited to within that gap.

It also gives companies the option to switch from a fixed rate to a variable rate if market interest rates fall in the future.

An IBK Industrial Bank of Korea official said, “Through this product, we will help ease the financing cost burden of mid and low credit SMEs and support them so they can grow into strong companies.”