Amid a record-low key interest rate, banks are increasingly expanding loans to small businesses and self-employed businesspeople, offering a relatively higher interest rate than private loans.

During the first half of the year, the nation’s major banks saw a steep increase in the ratio of their small business loans as opposed to the total loan amount.

Korea Exchange Bank had disbursed small and mid-sized enterprise loans worth 21.4 trillion won ($18.1 billion) from the beginning of the year through the end of June, up 7.9 percent from the end of last year, according to officials. Total loans rose 2.7 percent in the same period.

Other top-ranking banks such as KB Kookmin, Shinhan Bank and Hana Bank also saw a 6-7 percent increase in their SME loans in the January-June period, while their average loans only rose by up to 3 percent.