[E-Daily Reporter Kim Se-yeon ] KakaoBank ( KakaoBank Corp.(323410)) has launched a real estate-secured loan refinancing service that allows sole proprietors to consolidate their existing loans into a single loan. Customers can consolidate up to five loans—including unsecured loans, guaranteed loans, and real estate-secured loans—from other financial institutions, and borrow up to 1 billion won at an annual interest rate as low as 3.04%.

KakaoBank Corp. announced on the 11th that it has launched the “Real Estate-Secured Loan Refinancing for Sole Proprietors” service to reduce the financial burden on small business owners.
This service allows self-employed individuals to refinance loans obtained from other financial institutions into a KakaoBank Corp. real estate-secured loan. Eligible loans for refinancing include three types: personal loans, guaranteed loans, and real estate-secured loans for self-employed individuals; however, only loans that have been outstanding for at least one year from the disbursement date are eligible.
It is also possible to consolidate up to five loans from different financial institutions into a single real estate-secured loan. If the credit limit is higher than that of the existing loans, borrowers can increase the loan amount when refinancing.
As of the 11th, the minimum annual interest rate is 3.04%, and the maximum loan amount is 1 billion won. The loan term is up to 20 years, and the loan can be secured by condominiums, officetels, and multi-unit commercial buildings. However, failure to repay the loan may result in risks such as the bank exercising its rights over the real estate provided as collateral.
For this service, KakaoBank Corp. has introduced an “automatic repayment system” that deposits the loan proceeds into the repayment account at the existing financial institution simultaneously with the loan disbursement. The system is designed to verify the eligibility of the repayment account and the payment of any associated fees to ensure the loan proceeds are used to repay the existing loan.
The service is available on the KakaoBank Corp. Real Estate-Secured Loan for Sole Proprietors page. During the loan application process, select “Refinance” and then choose the loan to be refinanced from the list of existing loans.
KakaoBank Corp. is offering 200,000 won in cashback to all customers who complete a loan refinancing by January 31 of next year.
KakaoBank Corp.’s Real Estate-Secured Loan for Sole Proprietors, launched last October, has been offered at an average annual interest rate of 3.74% over the past year. Previously, the service provided a subordinated loan feature to secure additional funds, and the refinancing feature has now been added.
A KakaoBank Corp. official stated, “By allowing business loans scattered across various financial institutions to be consolidated into a single loan, we have simultaneously improved interest rate benefits and the convenience of loan management,” adding, “We will expand our financial support to provide tangible assistance to small business owners.”