The Korea Federation of Small and Medium Enterprises announced on the 2nd that it will conduct the 'The Dream Subscription Event' from September 1 to October 31, offering an additional annual interest rate of 0.3 percentage points (P) to customers joining the Small and Medium Enterprises Mutual Aid Fund, resulting in a maturity interest rate of 3.3%.
This event is implemented to enhance interest benefits for small and medium enterprises to ensure a fixed interest rate of 3.3% at maturity, amid declining savings interest rates at commercial banks, and to support small and medium enterprises in establishing a loan base through mutual aid fund membership that can be utilized when funds are needed in the future.
The mutual aid fund is a system introduced in 1984 under the 'Small and Medium Enterprises Cooperative Act.' It is financed by contributions paid by small and medium enterprises and small businesses, along with government grants, allowing for the use of wholesale sales credit loans, bills, checks, and operating funds.
Members can take out credit loans at an average annual interest rate of 5.5% up to three times their contribution balance, depending on their credit rating. If the loan limit is insufficient, they can use real estate collateral loans at an annual interest rate of 4.25% up to ten times the balance. Additionally, through local government interest compensation support, they can further reduce the interest burden by up to 2 percentage points.
Applications for mutual aid fund membership and loans can be made at the Korea Federation of Small and Medium Enterprises customer center, website, and mobile app.