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What is Shinkin Bank?

The previous elaborated the definition of Japan Finance Corporation and how to finance through this institution.

This article will introduce the most popular financing institution among cooperative financial institutions: Shinkin bank, weather for foreigners or Japanese. We elaborate on the functions and features of Shinkin Bank so that you will know clearly understand how to finance through Shinkin Bank.


Today, before getting down to the business, we will briefly introduce cooperative financial institutions(CFI), where Shinkin Banks subordinate. CFI is composed of the Credit union, Shinkin Bank, Norinchukin Bank, Shoko Chukin Bank, Japan Agricultural Cooperatives, etc. It is a non-profit corporation whose basic principle is mutual assistance among members, mainly small and medium-sized enterprises and individuals. It is different from general financial institutions such as city banks, which are in the form of Kabushiki Kaisha aimed at maximizing profits. 

Shinkin bank (信用金庫) is a type of Japanese deposit institution. They are cooperative regional financial institutions serving small and medium enterprises and local residents. Anyone who lives works, or has an office in the region served by the bank can become a member. However, companies with over 300 employees are prohibited from membership.

The Shinkin Central Bank serves as the central bank for the Shinkin banks. In this role, it makes loans to and accepts deposits from Shinkin banks. The supervising authority is the Financial Services Agency. Shinkin banks were founded in 1951. They were created to serve some of the same functions as credit unions, but can accept deposits from non-members (inside and outside their area) without limitation and make loans to the “graduated” (outgrew the membership qualifications) members.


  • Friendly to small companies and there is no withdrawal of loan credit.

In the principle of priority of profits, megabanks will not lend them money unless they have a sales scale of at least 500 million yen. Also, Shinkin Banks and regional banks are community-based banks, so they do not have to be reluctant to lend money like megabanks.

  • The average financing amount is limited and the interest rate is high.

It’s enough to raise about 3 million yen or 5 million yen per case, but it can not deal with the business like real estate investment that comes to tens of millions of yen. Also, office work and the labor cost increase because Shinkin Bank accumulates small loan transactions, which also leads to a high-interest rate compared to other banks. 

Compared with Japan Finance Corporation(JFC)

  • It is more appropriate to receive a loan in the order of receiving a loan from the Japan Finance Corporation firstly and then receiving a loan from a credit union. Because it is said that those who have a history of borrowing at the Japan Finance Corporation have higher creditworthiness.
  • It takes about one to one and a half months to get the loan from JFC. On the other hand, You need to wait about 2 to 3 months to get a loan because the examination of Credit Guarantee Corporation decides if you are eligible, which takes extra time. 

In summary, we recommend people who have no startup experience first apply for a loan from the Japan Finance Corporation.


1. Apply for a credit guarantee at a Shinkin Bank counter near you.

If the Shinkin Bank determines you are eligible for a loan,It will help you submit the required documents to the Credit Guarantee Corporation. The required documents are listed below.

In the case of people who are planning to start a new business

  • Startup plan
  • Certificate of registered seal belongs to the applicant
  • Permit required for business or copy of it(only if they are required to start a business)
  • Documents that can confirm the number of funds you prepared for business. (Deposit certificate)
  • Copy of Lease contract 
  • Something that can be provided to confirm the amount of payout(copy of receipt)
  •  Copy of payback schedule if you get a loan. (something can be provided to confirm the loan balance)

In the case of people who have started a business

  • Startup plan
  • A certificate of registered seals belongs to the applicant and joint guarantor.
  • Permit required for business or copy of it(only if they are required to start a business)
  • certified copy of commercial registration(corporate body)
  • notification of the opening of business and notification of discontinuance of business(individual)

Please download the business plan data through this website.

Attached document if necessary

  • Copy of articles of incorporation(corporate body)
  • Copy of written estimate(equipment funds)
  • Copy of contract (equipment funds)
  • Certified copy of real estate register(If you have real estate)
  • Documents that can verify your work experience(certificate of employment, tax certificate slip)
  • Income certificate
  • Something you can check the transition of business funds from the foundation to the present(Business deposit passbook)

2. Credit Guarantee Corporation Examination

After applying, the Credit Guarantee Corporation will confirm whether you are eligible for the loan. During the examination, interviews are sometimes conducted.

3.Acceptance of guarantee from Credit Guarantee Corporation

A “credit guarantee” will be issued to the credit union you applied for.

4.Extension of loan

If the Credit Guarantee Corporation issues the “credit guarantee”, you can get a loan from a financial institution. what need to be aware of is If you didn’t pass the examination of Credit Guarantee Corporation, It is almost impossible to finance through other Shinkin banks. In case you passed the examination, but still failed in financing through the branch of Shinkin Bank, which rarely happens, you can try other types of Banks (include Shinkin Bank).


In this article, we introduce one of the most popular funding methods belongs to CFI, Shinkin Bank, whose basic principle is not profit but the mutual assistance among members, mainly small and medium-sized enterprises and individuals. The Shinkin Bank is a good choice for foreigners who didn’t have startup experience before. Since only the Japanese version of the required documents is provided to finance through Shinkin Bank, It is an obstacle for some foreigners who want to start a business in Japan. Sugee Translation provides high-quality translation services in specialized fields. If you need any translation service, please contact us through Sugee Translation.

Notes for the readers:

Please use this article only as a reference, not as a legal guideline. Therefore, will take no responsibility or liability, so far as legally possible, for any consequences of your actions. This article is written by Chen Xin, a SUGEE writer, on 5 March 2020.


[1]HOME. (2020). 信用金庫から融資を受ける流れとは? | 日本政策金融公庫での融資のご相談なら – 創業融資ガイド. 日本政策金融公庫での融資のご相談なら – 創業融資ガイド. Retrieved 16 April 2020, from

[2信用金庫と銀行・信用組合との違い | 一般社団法人全国信用金庫協会. (2020). Retrieved 16 April 2020, from
[3]信用金庫の平均融資額はどれくらい?資金調達する前に公庫の活用を考える | 今日の経営. (2020). Retrieved 16 April 2020, from

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