A comparative disclosure service will be introduced that allows small business owners to compare loan products at a glance online.
On the 22nd, the Financial Services Commission and the Financial Supervisory Service announced that they, along with six financial associations and federations, will launch a comparative disclosure service for small business owner loan products through the 'Everything Financial Products' platform starting on the 23rd.
In the meantime, the financial burden on small business owners, such as self-employed individuals, has increased due to prolonged high interest rates, but it has not been easy for those seeking loans to compare key loan conditions like interest rates and repayment methods at a glance.
In particular, unlike household loan products such as mortgage loans, small business owner loans have diverse characteristics by business type and purpose of the loan, making it difficult for busy small business owners to search, compare, and choose individually. There are 4,269,000 self-employed individuals in South Korea, accounting for 75% of all self-employed people.
This comparative disclosure involves banks, savings banks, card and capital companies, insurance companies, and credit cooperatives that provide small business owner loans. The disclosure will cover not only loan products but also policy finance products handled through agreements with guarantee institutions and proxy lending methods by financial companies.
Considering the diverse characteristics of small business owner loans, the financial authorities have refined the search criteria and added a 'detailed information' feature to check the specifics of products of interest. A total of 10 types of search conditions are provided, including use of funds, eligible applicants, types of loans, product classification, and required amounts, to help easily find desired products.
The comparison disclosure results screen provides a consistent overview of each product's information, allowing users to compare the products at a glance, and also offers a custom sort function by financial company, product name, and interest rates.
The financial authorities noted, 'As comparisons between similar loan products provided by financial companies become easier, competition will be stimulated, which is expected to lead to the launch of products that reflect the needs of small business owners and improve financial services.'