Reducing the Burden of Repaying Loans for Small and Medium-Sized Enterprises (SMEs): A Complete Guide to the Policy Loan Repayment Extension System

Solve the difficulties of small business owners with policy loan repayment extensions! Rising prices, increasing labor costs, and persistent high interest rates are increasing the burden on small business owners. In particular, the principal and interest payments due monthly are a significant burden on small business owners. To help these struggling small business owners, the government is implementing a policy loan repayment extension program.

What is the Policy Loan Repayment Extension Program?

This program extends the principal repayment period for up to 5 years to reduce the monthly principal and interest repayment burden on small business owners using direct loans from the Small and Medium Business Corporation. In short, it aims to reduce the burden of monthly principal and interest payments, allowing small business owners to focus on their businesses.

Why is the Policy Loan Repayment Extension Program Necessary?

• Securing Liquidity: Reducing the burden of monthly principal and interest payments allows for flexibility in short-term funds management.
• Improving Business Stability: Alleviating repayment burdens helps overcome business crises and maintain stable operations.
• Simplified Application Process: Online applications make it convenient to use the program.
• Tailored Support: Repayment grace periods can be selected within a maximum of 5 years, providing support tailored to the individual circumstances of small business owners.

Who is Eligible for the Policy Loan Repayment Extension?

• Small business owners currently using direct loans from the Small and Medium Business Corporation
• Small business owners who have made at least one principal payment after the grace period and interest payment period.
• Small business owners experiencing business difficulties (multiple debts, decreased sales, low/moderate creditworthiness, credit rating downgrade, etc.)

How to Apply for a Policy Loan Repayment Extension?

🔗 How to Apply for a Policy Loan Repayment Extension

1. Visit a Small and Medium Business Corporation Regional Center: Applications are accepted at 77 regional centers nationwide.
2. Online Application through the Small and Medium Business Policy Fund Website: Apply online through the Sangsaengnuri website or the Small and Medium Business Policy Fund website.

What Should You Be Aware of When Extending Policy Loan Repayments?

• Increased Total Interest Burden: Extending the repayment period can increase the total interest burden.
• Possibility of Interest Rate Increases: The interest rate may slightly increase when extending the repayment period.
• No Grace Period: Principal and interest repayments begin immediately after the repayment extension.

Frequently Asked Questions (FAQ)

• What is the difference between repayment extension and repayment deferral? Repayment extension extends the principal repayment period, while repayment deferral extends the interest repayment period.
• What documents are required when applying for a repayment extension? A repayment plan, a copy of the business registration certificate, and a copy of the resident registration card or driver's license are required.
• How long does it take to process a repayment extension application? It takes approximately one month.
• Can a repayment extension application be rejected? Yes, it can be rejected if it is difficult to verify the business difficulties or if the repayment possibility is deemed low.

Through the policy loan repayment extension program, small business owners can reduce their operational burden and gain an opportunity to overcome difficult times. Apply now and take advantage of the benefits!