NAVER Financial Launches First Unsecured Loan for Online SMEs in Banking Sector, Partnering with Woori Bank
NAVER Financial Launches First Unsecured Loan for Online SMEs in Banking Sector, Partnering with Woori Bank
NAVER Financial Launches First Unsecured Loan for Online SMEs in Banking Sector, Partnering with Woori Bank
- Naver Financial partners with Woori Bank to offer an unsecured loan for Naver Smart Store sellers, following the partnership with Mirae Asset Capital
- Naver Financial and Woori Bank plans to increase their loan limit by utilizing diverse non-financial data from NAVER Smart Stores
- Based on data and technology, Naver Financial plans to further expand its partnership with financial companies to provide inclusive financial services to SMEs
2021-07-22
Naver Financial announced on July 22 that it is partnering with Woori Bank to offer the new ‘Woori Bank-NAVER Smart Store Loan’ for Naver Smart Store sellers, expanding the loan opportunities for online businesses. The partnership aims to make financial services more inclusive and accessible to all small and medium-sized enterprises (SMEs).
With the new Naver Financial-Woori Bank loan, online sellers that were not able to get financial services from the banking sector can secure capital for their businesses. The new partnership will allow both non-banking sector and banking sector loans to be provided to Smart Store sellers, further strengthening the lock-in effect so that sellers can take root in the Naver Smart Store ecosystem.
This is Naver Financial’s second unsecured loan for Smart Store sellers, following the Mirae Asset Capital Smart Store Business Loan, launched in partnership with Mirae Asset Capital in December 2020. The Mirae loan, which is based on ACSS (Alternative Credit Scoring System), is rapidly showing significant results, exceeding the loan contract agreement of USD 43 million (KRW 50 billion) within six months of its launch.
The partnership between Naver Financial and Woori Bank leverages the former’s platform capabilities and the latter’s product development capabilities to significantly expand online SME-only credit loans. Naver Financial connects Smart Store sellers with Woori Bank, which in turn handles evaluation and execution.
Through the partnership, 460,000 online Smart Store sellers can now get an unsecured loan for online businesses from the banking sector. Before, online sellers had to use high-interest loans as they are operating without physical storefronts. Naver Financial and Woori Bank plan to continuously improve the products, such as loan evaluations and increasing loan limits, by making use of non-financial data from Smart Stores.
To apply, the Smart Store transaction amount must be at least USD 433 (KRW 500,000) per month for three consecutive months, and the business registration period must be at least six months. Customers can borrow up to USD 34,000 (KRW 40 million), and the interest rate is as low as 2.9% per annum (as of July 22, 2021). The two companies announced that they have expanded their loan targets to the maximum extent so that even those with a low credit rating can be approved.
Also, Smart Store sellers can choose the repayment method that suits their businesses, such as bullet repayment, installment repayment and a line of credit. Since a line of credit is a structure that pays interest only for the amount and period used, it is expected to be particularly useful for online sellers who often need short-term funding.
The lending process has also been simplified for overloaded business sellers who seek a quick solution. They can simultaneously inquire about the limits of Woori Bank Naver Smart Store Loan and Mirae Asset Smart Store Business Loan, and make a loan agreement with just one loan application at Naver Smart Store Seller Center and Naver Partner Financial Support.
“Smart Store sellers with favorable credit scores can borrow from Woori Bank, and those who have a thin file are favorable to apply for Mirae Asset Smart Store Business Loan.” said Kim Tae Kyung, leader of the loan service at Naver Financial. “We will continue to expand partnerships with financial companies to help fund online businesses of Smart Store sellers.”
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