Ansim Account No. 4, which provides up to 20 million won in support for small business owners and self-employed people, will be launched on Sept. 3. The support limit, previously 10 million won, has been doubled. Support amounts are also subdivided based on years in business, credit scores and sales.

Seoul said it will supply Ansim Account No. 4 worth 300 billion won from Sept. 3. It is the second support programme this year following a 200 billion won supply in the first half, bringing this year’s total supply to 500 billion won.

Ansim Account is a revolving credit line that allows small businesses to draw and repay funds as needed within a loan limit. Borrowers pay interest only on the amount actually used.

Starting with No. 4, the support limit per business will be expanded to 20 million won from a previous maximum of 10 million won. Support will be provided in three brackets of up to 10 million won, 15 million won and 20 million won, depending on years in business, credit score and reported sales.

Eligibility for up to 15 million won requires at least 2 years in business, a NICE credit score of at least 790 and reported sales of at least 20 million won. To qualify for up to 20 million won, applicants must have at least 2 years in business, a credit score of at least 830 and reported sales of at least 30 million won. Businesses that meet the basic requirements can apply for up to 10 million won.

Existing Ansim Account users can also apply for additional support. They can receive up to 10 million won more within a total cap of 20 million won when combining their existing guarantee balance and the new application amount.

Basic eligibility covers sole proprietors with a place of business in Seoul who have operated for at least 1 year, whose owner has a NICE credit score of at least 600, and who meet conditions such as at least 2 million won in total sales over the most recent 3 months or at least 10 million won in reported sales over the past year.

As of Aug. 27, the loan interest rate is about 5.12 percent a year, calculated by adding up to 2.0 percent to the 91-day CD rate. The guarantee fee is 1.0 percent a year. Repayment is a lump-sum payment at maturity after 1 year, and the term can be extended in 1-year increments for up to 5 years.

The six lending banks are Shinhan Bank, Woori Bank, KakaoBank, K Bank, Toss Bank and Hana Bank.

Applications can be made through the Seoul Credit Guarantee Foundation mobile app from 9 a.m. on Sept. 3 until funds are exhausted. After receiving guarantee approval, borrowers apply for loans without visiting a branch through each bank’s mobile app.

From Sept. 3 to Sept. 9, the first week of applications, a five-day rotation system will be applied based on the last digit of the owner’s birth year. Applicants with last digits 1 and 6 can apply on Sept. 3; 2 and 7 on Sept. 4; 3 and 8 on Sept. 7; 4 and 9 on Sept. 8; and 5 and 0 on Sept. 9. From Sept. 10, applications will be accepted regardless of birth year.