Industrial Bank of Korea (IBK) launched a 1 trillion won fixed-rate specialized product, the "Hope On Reassurance Fixed-Rate Loan," for mid-to-low credit small and medium-sized enterprises (SMEs) on the 3rd.
The product was designed to ease the burden on mid-to-low credit SMEs struggling with financing costs during a period of rising interest rates. The loan limit per company is 1 billion won for working capital and 4 billion won for facility funds. IBK provides an interest rate reduction of up to 1.0 percentage point within the range of the difference between fixed and variable rates.
The bank also offers companies the option to convert from a fixed rate to a variable rate in preparation for a period of falling interest rates. "We will continue to expand inclusive finance support as a solid growth ladder for small and medium-sized enterprises," an IBK official said.
