Hana Bank is launching a 1.3 trillion won financial support package for local small business owners, featuring unsecured and non-guaranteed loan products. The initiative includes the new “Hana-only Boss Loan” and an expansion of the existing “Hana-the-SOHO Success Ladder Loan,” both aimed at easing liquidity constraints for micro-enterprises and vulnerable business owners.
## New Financial Support for Small Businesses
Starting July 1, Hana Bank will introduce the “Hana-only Boss Loan,” a product specifically designed to provide emergency management funds to small business owners, including those operating in traditional markets and local commercial districts. According to the bank’s official announcement, the program will provide up to 10 million won per business, with a total operational fund of 300 billion won available through the end of this year.
To expedite the funding process, Hana Bank has simplified its internal review system. Instead of requiring centralized headquarters approval, the bank has authorized local branch managers to make final lending decisions. This decentralization is intended to ensure that local entrepreneurs can access capital quickly during times of financial stress.
## Interest Rate Incentives and Rebates
The bank has structured the loan to include specific interest rate benefits for targeted groups. Businesses eligible for a 0.3 percentage point interest rate discount include:
* Young entrepreneurs aged 39 and under.
* Business owners aged 65 and older.
* Startups within their first three years of operation.
* Businesses experiencing documented revenue declines.
* Registered merchants using public delivery applications or the Onnuri gift certificate program.
Hana Bank projects that these incentives will allow eligible borrowers to access funds at an interest rate in the mid-4% range. Furthermore, the bank is introducing an interest rebate program for borrowers who consistently repay their loans. After one year of successful repayment, the bank will refund 10% of the interest paid to the borrower in cash.
## Expansion of the Success Ladder Loan
In addition to the new loan product, Hana Bank is scaling up its “Hana-the-SOHO Success Ladder Loan.” Originally launched in May, the bank is increasing the total supply volume of this product to a scale three times larger than the previous amount.
The eligibility criteria for this program have been broadened. While the program previously focused on those scheduled to repay existing guaranteed loans, it is now open to any small business owner who is diligently repaying principal and interest on their current debt. Like the “Boss Loan,” this product offers up to 10 million won in unsecured, non-guaranteed funding with interest rates in the mid-4% range. The bank has also removed early repayment fees and added a credit line (minus account) option to accommodate the irregular cash flow patterns common among small business owners.
## Strategic Context of the Support
This financial package is part of the “Inclusive Finance Roadmap” unveiled by Hana Financial Group at the end of May. Seo Yu-seok, an executive at Hana Bank, stated that the bank aims to provide financial support to help small business owners and self-employed individuals recover in a difficult economic environment.
The bank is also monitoring the Financial Services Commission’s development of a specialized credit scoring model for small businesses. Once implemented, Hana Bank plans to integrate this model into its “Hana-only Boss Loan” to potentially offer further interest rate discounts, according to company statements.