Hana Bank expands inclusive finance support for small businesses to 1.3 trillion won

Hana Bank said Monday it will launch two new inclusive finance products totaling 1.3 trillion won ($841 million) to support small business owners and the self-employed.

The initiative is part of the "inclusive finance roadmap" Hana Financial Group announced in May, designed to ease the financial burden on small businesses struggling with an economic slowdown and rising costs while supporting local economic recovery.

The first product, a small-business emergency loan called "Hana Ppunin Sajangnim Daechul," will launch July 1. Targeting small business owners in traditional markets and neighborhood commercial districts, the unsecured, guarantee-free loan provides up to 10 million won in emergency operating funds. The bank will cap total disbursements at 300 billion won through the end of this year.

Preferential rates of 0.3 percentage points will be offered to business owners aged 39 or under, operators aged 65 or older, businesses established within the past three years, businesses with declining sales, merchants accepting Onuri gift vouchers, and businesses using public online food delivery platforms. The product focuses on the rapid supply of small-scale operating funds rather than collateral- and guarantee-based lending.

Once the Financial Services Commission introduces a small-business-specific credit scoring model in the second half of this year, the bank plans to apply that model to offer additional rate benefits, targeting a minimum annual interest rate in the mid-4 percent range.

Branch managers will be able to approve loans without headquarters review, speeding up funding. Borrowers who make consistent repayments for one year after disbursement will receive a cash rebate equal to 10 percent of the interest paid. The bank will also provide non-financial support, including discount coupons for business-use electronics through partnerships with home appliance companies.

Hana Bank also expanded eligibility for a separate product it introduced in May — a loan for borrowers with a strong repayment track record.

Previously available only to those who had repaid, or were scheduled to repay, guaranteed loans from Hana Bank, the product will now extend to all borrowers diligently repaying principal and interest in installments. The bank also raised the supply ceiling from 300 billion won to 1 trillion won.

The product offers unsecured, guarantee-free loans of up to 10 million won at an annual rate in the mid-4 percent range. Early repayment fees are waived, and borrowers may opt for a revolving credit line, giving businesses flexibility to meet funding needs as they arise.

"We sought to expand the leading role of finance so that small business owners and the self-employed — who are persevering through a difficult business environment — can take another leap forward," said Seo Yu-seok, executive vice president of Hana Bank's corporate group. "We will continue to spread practical inclusive finance to eliminate blind spots in financial access and revitalize local economies."