[Edaily Reporter PARK JONG-HWA ] Less than four years after KakaoBank Corp. launched its loans for sole proprietors, the outstanding loan balance has surpassed 400 million won.

KakaoBank Corp. announced on the 2nd that its outstanding balance for loans to sole proprietors has surpassed 400 million won. This milestone comes 3 years and 11 months after the bank introduced its loan products for sole proprietors in November 2022.

KakaoBank Corp. cited competitive interest rates as a key factor driving the increase in loan demand. As of the end of August, the average interest rates for KakaoBank Corp.’s sole proprietor loans were: △5.66% for unsecured loans, △3.91% for guaranteed loans, and △3.48% for real estate-secured loans.

The bank is also making efforts to lower the barriers to borrowing for borrowers with medium to low credit scores by refining its credit scoring models. As a result, two-thirds of KakaoBank Corp.’s sole proprietor loan customers have medium to low credit scores.

KakaoBank Corp. is preparing to expand its portfolio. Next month, it will launch a refinancing product to allow sole proprietors with loans from other banks to switch to KakaoBank Corp., and next year, it plans to introduce a joint loan product with Busan Bank.

A KakaoBank Corp. spokesperson stated, “While actively participating in financial support for small business owners struggling due to the economic downturn, our outstanding balance of loans to sole proprietors has exceeded 4 trillion won,” adding, “We will continue to lead the way in inclusive finance so that more small business owners can enjoy tangible benefits.”