KIBO-Guaranteed Loan Effective Rate Calculator

Compare a Korean KIBO-guaranteed loan with unsecured and secured offers using guarantee fees, bank and evaluation costs, repayment, early payoff, refund sensitivity, total cost, and dated XIRR.

Compare three actual offers on one payoff date

Defaults are fictional. Replace them with the guarantee certificate, fee notice, and bank amortization terms so dated XIRR reflects net proceeds through any refund.

Common analysis terms

A payoff month of zero runs each option to maturity. A positive month assumes full payoff immediately after that month’s regular payment.

months

Zero means maturity; a positive value applies the same month to all options.

%

Share of the estimated unearned fee assumed to be actually refunded.

1. KIBO-guaranteed loan

Enter the bank offer and the guarantee terms together. The calculator does not predict a fee rate.

KRW

Use the executable amount in the actual offer, not an advertised maximum.

%

Confirm the fixed or floating basis separately.

months
months
KRW

Enter cash costs deducted at origination.

KRW

Use non-duplicated evaluation, appraisal, security, or legal costs.

KRW

Enter the expected cash charge at the tested payoff month, not a rate.

%

Use the issued ratio rather than assuming the displayed general 85% ratio.

%

The public range is context only; enter the decided rate in the offer or certificate.

Use confirmed total when a fee notice exists; use rate estimate for pre-consultation planning.

2. Unsecured loan

Enter the actual bank offer without a guarantee fee or collateral setup.

KRW

Use the executable amount in the actual offer, not an advertised maximum.

%

Confirm the fixed or floating basis separately.

months
months
KRW

Enter cash costs deducted at origination.

KRW

Use non-duplicated evaluation, appraisal, security, or legal costs.

KRW

Enter the expected cash charge at the tested payoff month, not a rate.

3. Secured loan

Enter the actual secured-loan offer including appraisal, registration, and legal costs.

KRW

Use the executable amount in the actual offer, not an advertised maximum.

%

Confirm the fixed or floating basis separately.

months
months
KRW

Enter cash costs deducted at origination.

KRW

Use non-duplicated evaluation, appraisal, security, or legal costs.

KRW

Enter the expected cash charge at the tested payoff month, not a rate.

Effective borrowing-cost results

The effective annual rate is dated XIRR on net proceeds, repayments, guarantee fees, and refunds. Tax effects and approval probability are excluded.

Lowest effective-rate option

Secured loan

6.79%

KIBO loan effective rate

6.96%

Nominal 5.20%

KIBO total financing cost

KRW 26,524,000

Final payoff in Month 18

Planned guarantee-fee refund

KRW 1,224,000

Realization 100.00%

Three-option effective-cost comparison

Effective cost comparison of KIBO-guaranteed, unsecured, and secured loans
OptionNominal rateNet proceedsInterestFee minus refundBank and other costPrepayment chargeTotal financing costEffective rate
KIBO-guaranteed loan5.20%KRW 296,140,000KRW 20,540,000KRW 4,284,000KRW 800,000KRW 900,000KRW 26,524,0006.96%
Unsecured loan7.20%KRW 299,700,000KRW 28,440,000KRW 0KRW 300,000KRW 1,200,000KRW 29,940,0007.82%
★ Secured loan5.50%KRW 297,200,000KRW 21,725,000KRW 0KRW 2,800,000KRW 1,500,000KRW 26,025,0006.79%

Guarantee-fee period breakdown

Planning amounts apply the entered ratio and rate to each period’s opening balance.

KIBO guarantee-fee calculation by coverage period
PeriodOpening balanceGuaranteed amountFee paidPlanned refund
Months 0–12KRW 300,000,000KRW 255,000,000KRW 3,060,000KRW 0
Months 12–24KRW 240,000,000KRW 204,000,000KRW 2,448,000KRW 1,224,000

Early-payoff refund sensitivity

Three cases assume 0%, 50%, or 100% realization of the monthly unearned-fee estimate.

Guarantee-fee refund realization sensitivity
RealizationPlanned refundTotal financing costEffective rate
0%KRW 0KRW 27,748,0007.27%
50%KRW 612,000KRW 27,136,0007.11%
100%KRW 1,224,000KRW 26,524,0006.96%

Key KIBO loan cash flows

Shows origination, the first six months, fee-renewal months, and final payoff. Positive is a borrower inflow; negative is an outflow.

Key dated cash flows for the KIBO-guaranteed loan
Month and dateProceedsDebt and payoffGuarantee feeRefundNet cash flowBalance
Month 0 · 2026-08-17KRW 300,000,000KRW 800,000KRW 3,060,000KRW 0KRW 296,140,000KRW 300,000,000
Month 1 · 2026-09-17KRW 0KRW 1,300,000KRW 0KRW 0-KRW 1,300,000KRW 300,000,000
Month 2 · 2026-10-17KRW 0KRW 1,300,000KRW 0KRW 0-KRW 1,300,000KRW 300,000,000
Month 3 · 2026-11-17KRW 0KRW 1,300,000KRW 0KRW 0-KRW 1,300,000KRW 300,000,000
Month 4 · 2026-12-17KRW 0KRW 1,300,000KRW 0KRW 0-KRW 1,300,000KRW 300,000,000
Month 5 · 2027-01-17KRW 0KRW 1,300,000KRW 0KRW 0-KRW 1,300,000KRW 300,000,000
Month 6 · 2027-02-17KRW 0KRW 1,300,000KRW 0KRW 0-KRW 1,300,000KRW 300,000,000
Month 12 · 2027-08-17KRW 0KRW 11,083,333KRW 2,448,000KRW 0-KRW 13,531,333KRW 240,000,000
Month 18 · 2028-02-17KRW 0KRW 191,723,333KRW 0KRW 1,224,000-KRW 190,499,333KRW 0

Documents to prepare before consultation

  • Technology business plan, use of funds, repayment source, and monthly cash plan
  • Guarantee amount, ratio, term, discounts, and additions in the certificate
  • Guarantee-fee payment notice and early-termination refund guidance
  • Bank rate basis, grace terms, and amortization schedule
  • Prepayment-charge rate, waiver date, and expected cash amount
  • Technology evaluation, stamp, appraisal, security, and legal costs

Official-source review: 2026-08-17. This planning result does not guarantee KIBO approval, a fee rate, a refund amount, bank approval, or product suitability.

Related calculators

Why the bank rate is not the complete cost of a KIBO-guaranteed loan

A guarantee from the Korea Technology Finance Corporation, commonly known as KIBO, can support a technology-focused Korean small or medium-sized enterprise seeking bank finance.
The quoted bank rate is only one part of the borrower's cost.
Guarantee fees, bank charges, technology-evaluation or other origination costs, grace-period interest, the repayment method, a prepayment charge, and any guarantee-fee refund all change the cash actually received and paid.
This calculator puts those items on dated borrower cash flows and calculates an annual XIRR, so a KIBO-guaranteed offer can be compared with an unsecured offer and a secured offer on one boundary.

Nominal bank rate

The annual rate quoted by the bank. It normally excludes the guarantee fee and origination costs.

Total financing cost

Interest plus guarantee fees, bank and other costs, and any prepayment charge, less the modeled refund.

Effective annual rate

The dated XIRR that sets the present value of net proceeds and all later borrower cash flows to zero.

Official Korean guidance checked for this calculator

KIBO's guarantee-fee page, checked on August 17, 2026, describes the fee as the guaranteed amount multiplied by the decided guarantee-fee rate.
The page displays a base-rate structure of 0.8% to 2.2% and a final range of 0.5% to 3.0% after additions and reductions.
It also explains that when the guaranteed loan is repaid early, the fee for the period after the day following repayment may be refundable.
KIBO's guarantee-ratio page describes 85% as the general ratio for a new guarantee while also identifying separately treated cases.

The displayed ranges are not an individual quote

Article 33 of the Technology Guarantee Fund Act provides the basis for charging a guarantee fee on the guaranteed amount while considering credit and other factors.
Article 24 of its Enforcement Decree leaves the rate method to KIBO's operating rules with regard to creditworthiness and guarantee type.
The calculator therefore does not predict a company's rate, approval, guarantee amount, or technical assessment.
Enter the ratio and decided fee shown in the current consultation material, guarantee certificate, or fee notice.

Choose the guarantee-fee input mode that matches the document in hand

Rate estimate before a final fee notice

Rate-estimate mode applies the user-entered guarantee ratio and annual fee rate to the opening loan balance of each coverage period.
A period is no longer than twelve months, and the last period is shortened to the remaining loan term.
Because principal repayment reduces the balance, later estimated fees can also decline.
This is a planning convention, not a reconstruction of KIBO's contract administration.

Confirmed prepaid total after a fee notice

Confirmed-total mode uses the exact entered cash fee at origination and the entered prepaid coverage length.
It does not invent later renewal fees.
If the prepaid coverage is shorter than the loan term and payoff occurs later, the calculator warns that future fees may be omitted.
Ask KIBO how the next guarantee period and fee will be determined before treating a multi-year result as complete.

The guarantee ratio applies to the guaranteed amount rather than automatically to every won of the bank loan.
For example, a KRW 300 million loan and an actual 85% guarantee ratio produce a KRW 255 million planning guarantee base before applying the entered rate and period.
Partial release, a changing guarantee amount, discounts, additions, and the collection schedule must still be taken from the actual documents.

How to use the calculator

  1. Set one origination date and one payoff test.
    Use the same date for all three offers.
    Enter zero for payoff month to model each offer through maturity, or enter a positive month to model full payoff after that month's regular payment.
  2. Copy the bank terms without combining cost categories.
    Enter principal, nominal rate, term, grace, repayment method, bank charge, other origination cost, and the expected cash prepayment charge.
    Avoid counting the same evaluation or legal invoice in two fields.
  3. Copy the KIBO terms from the current guarantee documents.
    Enter the actual guarantee ratio and decided annual fee rate.
    Select a rate estimate only when a final total is unavailable, and select confirmed total when the prepaid amount and covered period are known.
  4. Build the two no-guarantee alternatives on the same boundary.
    Include appraisal, security-registration, and legal cost in the secured offer, and include any actual bank charge in the unsecured offer.
    Using equal principal and term values makes the total-cost comparison easier to interpret.
  5. Use refund sensitivity as a consultation question.
    Compare zero, fifty, and one hundred percent realization of the modeled unearned fee.
    Take the gap to KIBO and ask for the actual eligible days, partial-repayment treatment, deductions, payment method, and expected processing date.

How repayment and early payoff enter the model

Equal payment

After any grace period, principal and interest are combined into a broadly level scheduled payment at the entered fixed rate.

Equal principal

Scheduled principal is level after grace, so early payments are higher and the interest-bearing balance falls faster.

Bullet

Interest is paid monthly and principal is concentrated at maturity or at the tested early-payoff month.

For an early-payoff scenario, the model first applies the regular payment for that month and then pays all remaining principal plus the entered prepayment charge.
A refund is modeled only for the unexpired part of the current prepaid guarantee period.
The allocation uses whole months and the selected realization percentage, while KIBO's actual settlement may use dates, partial releases, deductions, or document-specific rules.
Bank daily interest and the exact settlement date may also differ from the monthly planning schedule.

Three decision scenarios

A lower KIBO bank rate versus an upfront guarantee fee

A guaranteed offer can have a lower nominal bank rate but deliver less cash at origination because the first guarantee fee and other costs are paid immediately.
Compare net proceeds and effective annual rate to see whether the interest saving is large enough to offset those costs.
Keep principal, term, and payoff month equal when isolating this question.

Payoff after an investment round or receivable collection

A company may take a three-year facility but plan to repay in Month 18 after an investment round or a major receivable is collected.
Test Month 18 to include remaining principal, the expected bank prepayment charge, and the modeled guarantee-fee refund on the same date.
Review the zero-refund case before relying on the repayment plan.

A secured loan with a low rate but high setup cost

Appraisal, registration, and legal costs can narrow the advantage of a lower secured-loan rate, especially over a short holding period.
Enter cash costs here, then evaluate non-cash issues such as collateral restrictions, covenant risk, and business flexibility outside the calculator.
A small XIRR advantage does not decide whether pledging collateral is suitable.

Reading the outputs without overclaiming precision

Net proceeds

Principal less guarantee fees paid at origination and bank or other origination costs. Lower net proceeds can raise XIRR even when scheduled interest is unchanged.

Interest total

Interest generated by the entered rate, grace, method, and payoff month. Future interest ends after the modeled payoff.

Guarantee fee less refund

All modeled fee payments less the selected refund realization. It should be reconciled to the KIBO notice.

Maximum monthly outflow

This can be dominated by remaining principal in the payoff month. It is a liquidity checkpoint, not a recurring payment forecast.

The lowest XIRR is not an approval or suitability decision

KIBO's online application guidance notes that a consultation result does not replace on-site technology evaluation and guarantee review.
A bank also performs its own credit process.
This calculator assumes the entered offers can be executed and compares their borrower cash costs only.
It does not determine eligibility, a guarantee limit, credit quality, collateral value, covenant compliance, tax treatment, accounting treatment, or a suitable product.

Consultation checklist

Ask KIBO

  • The guaranteed amount, actual ratio, and covered period.
  • The decided fee rate and each discount or addition.
  • The payment date, prepaid period, and renewal method.
  • Full and partial payoff refund rules, deductions, and the claim process.
  • Technology-plan, patent, revenue, and cash-flow evidence needed for review.

Ask the bank and your advisers

  • The fixed or floating basis and each rate component.
  • The first due date, grace terms, and full amortization schedule.
  • The prepayment-charge formula, waiver percentage, and expiry date.
  • Bank, stamp, appraisal, registration, and legal costs by payer.
  • Use-of-funds evidence, covenants, collateral, and repayment sources.

Frequently asked questions

Is the example 1.2% guarantee-fee rate a KIBO quote?

No. Every default is a fictional illustration. Replace it with the decided rate or fee in the latest KIBO document.

Does an 85% guarantee ratio mean the bank must lend the other 15%?

No. The ratio identifies the planning guarantee base. The unguaranteed portion, executable loan amount, and underwriting remain subject to the actual KIBO and bank terms.

Will early payoff refund the entire guarantee fee?

No. KIBO guidance refers to the period after repayment. Earned periods, partial repayment, deductions, and claim procedures can affect the actual amount.

Which mode should I use when a confirmed fee differs from the rate estimate?

Use the latest confirmed fee notice for the execution case. Ask why the guarantee base, period, discount, addition, or renewal coverage differs before accepting the estimate.

Should I always choose the option with the lowest effective rate?

No. Limits, timing, floating-rate risk, collateral, covenants, eligible uses, approval, and liquidity must be assessed separately.

Why does the English calculator use KRW?

This is a Korea-specific KIBO and domestic-bank comparison. Keeping KRW lets an English-speaking user copy amounts directly from Korean guarantee and bank documents.

Practical cautions

  • Reconcile evaluation and bank charges so the same invoice is not entered twice.
  • Ask the bank for the expected cash prepayment charge at the tested month rather than entering a headline charge rate.
  • Run a higher-rate copy for a floating-rate offer because this version holds the entered bank rate constant.
  • Do not mix after-tax savings into only one option, because tax and accounting treatment depends on the company and transaction.
  • Recheck KIBO procedures, current law, the guarantee certificate, and bank documents on the execution date.

Put every documented borrowing cost on the same timeline before the meeting

Replace the fictional defaults with the guarantee certificate, fee notice, and three bank offers.
Use the refund sensitivity and dated cash-flow breakdown to ask KIBO and the bank precise questions about renewal, payoff, and settlement.