Seoul Guarantee Insurance Company is preparing a Saeittol loan dedicated to sole proprietors. The Saeittol loan is a mid-rate unsecured loan offered to borrowers in the bottom 50% of credit scores, provided as a product in connection with banks and savings banks through Seoul Guarantee Insurance Company. Sole proprietors often have lower credit scores than employees and fail to obtain loans, so the company is launching a product dedicated to sole proprietors.
According to the financial industry on the 9th, Seoul Guarantee Insurance Company is preparing, with the Financial Services Commission, to launch a Saeittol loan dedicated to sole proprietors. Saeittol loans are divided into "Saeittol 1," handled by banks, and "Saeittol 2," handled by savings banks. Seoul Guarantee Insurance Company plans to first launch the sole-proprietor-only Saeittol loan handled by banks, then expand the scope to savings banks.
The Financial Services Commission announced in Feb. that it would present measures for the sound development of savings banks and would consider separating sole-proprietor loan products from Saeittol loans. With delinquency rates higher for sole proprietors than for individuals, the aim is to separate guarantee terms so that product supply is not contracted and can be revitalized. To that end, it also plans to push for the development of a separate guarantee screening model.
Recently, as the government has tightened total household loan controls, lending has decreased across the financial sector, and it has become even harder for sole proprietors to obtain Saeittol loans. According to the Korea Federation of Savings Banks, in the second half of last year, unsecured loans (private mid-rate and Saeittol 2) handled by savings banks totaled 4.3748 trillion won, down 30.2% from the same period a year earlier (6.2719 trillion won). During this period, the number of loans also fell from 449,538 to 426,231.