HSBC offering low-rate no-collateral loans to shops

HSBC Korea announced Monday that it is offering loans to small shop owners affected by Covid-19 with the Social Solidarity Bank.

The loans will be offered without collateral to small shop owners. No interest will be charged.

The total pool of funds available for the loan is 110 million won ($98,344) with each lender allowed to borrow as much as 5 million won.

While the funding is provided by HSBC, Social Solidarity Bank will evaluate and execute to loans.

Since March 2020, HSBC has loaned 340 million won to small business owners.

“With the Covid-19 prolonging, the damages small shop owners are suffering is growing,” said HSBC Korea CEO Jung Eun-young. “We hope our support will help small business owners in overcoming such difficult times.”

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]