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First Posco Smile Microcredit Bank Branch Opens
01/07/2010 - Posco has opened the first branch of Posco Smile Microcredit Bank to support low-income, low-credit households who can not get a loan from normal financial institutions.
Posco has opened the first branch of Posco Smile Microcredit Bank to support low-income, low-credit households with credit ratings of 7 or below who can not get a loan from normal financial institutions.
The first branch was opened at the Kkachisan open-air market in Hwagok-dong for small business owners or retailers to easily access the bank. About 100 related personnel attended the opening ceremony, including Chief Director Seung-yu Kim of the Smile Microcredit Bank Association and Chairman Joon-yang Chung.
Posco established Posco Smile Microcredit Bank on December 18 and plans to contribute 50 billion KRW over the next 10 years, including 10 billion KRW this year.
Posco established Posco Smile Microcredit Bank on December 18 and plans to contribute 50 billion KRW over the next 10 years, including 10 billion KRW this year.
Loan limits are 5 million to 50 million KRW at an interest rate of 4.5%, which is lower than normal banks, says Posco. Loan capital and interest can be repaid in installments of up to five years, with a six-month to one-year grace period.
“Amid difficult times for people due to widening gaps between the rich and poor along with unemployment, Posco Smile Microcredit Bank will contribute to stabilizing living of common people by supporting those neglected from financial institutions,” said Chung at the ceremony.
Posco Smile Microcredit Bank will also provide legal consultation by internal corporate lawyers, and plans to operate a merchant school to teach how to establish and operate a business. Support to provide a network for small retailers is also planned, utilizing the Posco purchasing network.
Posco plans to open additional branches in Pohang and Gwangyang in January 2010.
“Amid difficult times for people due to widening gaps between the rich and poor along with unemployment, Posco Smile Microcredit Bank will contribute to stabilizing living of common people by supporting those neglected from financial institutions,” said Chung at the ceremony.
Posco Smile Microcredit Bank will also provide legal consultation by internal corporate lawyers, and plans to operate a merchant school to teach how to establish and operate a business. Support to provide a network for small retailers is also planned, utilizing the Posco purchasing network.
Posco plans to open additional branches in Pohang and Gwangyang in January 2010.
