Shinhan Bank has launched a product to provide loans of up to 100 million won to preferred merchants on the co-prosperity delivery app Ddaenggyeoyo.

Shinhan Bank said on Aug. 18 it launched the "Ddaenggyeoyo Preferred Merchant Loan" on Aug. 18 to support business operations and funding for Ddaenggyeoyo merchants.

Eligible borrowers are businesses that designate Shinhan Bank for their Ddaenggyeoyo settlement account and Shinhan Card merchant payment account, and set at least 1 settlement account for major delivery platforms with Shinhan Bank. They must have average monthly sales of at least 10 million won over the previous 6 months and be at least 6 months past opening.

The loan limit is up to 100 million won. It is calculated based on average monthly sales over the previous 6 months or average monthly Shinhan Card purchase amounts. If all major delivery platform settlement accounts are designated to Shinhan Bank, borrowers can receive up to 3 times the benchmark amount, or up to 2 times if only 1 account is designated.

Borrowers can choose a loan term of 1, 2 or 3 years, with installment repayment of principal.

The credit assessment also uses non-financial data from Ddaenggyeoyo. It adds about 1,100 items such as order, sales and coupon usage information, reflecting a total of about 1,700 items in the assessment, including whether they subscribe to a fraud prevention service and small payment information. Customers with strong results have their internal credit rating raised by 1 notch.

It also applies an automatic repayment account service based on BaaS (Banking as a Service). When sales settlement funds are deposited into an account, the loan principal is automatically repaid according to the agreed method.

A Shinhan Bank official said, "This product connects sales and business data that Ddaenggyeoyo merchants have built up through their business to financial benefits." The official added, "We will expand support for small business owners by linking financial and non-financial services."