Gyeonggi-do to Implement Annual 1% Ultra-Low Interest Credit Loans in First Half of This Year...Nation's First

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will implement the 'Gyeonggi Ultra-Low Credit Loan Project' for residents with low credit scores for the first time nationwide in the first half of this year.

The Gyeonggi Ultra-Low Credit Loan Project is designed to help residents who need living expenses but have low credit ratings and cannot obtain loans from formal financial institutions, forcing them into high-interest illegal private loans. It is also expected to contribute to building a social safety net for financially vulnerable groups in the province who are struggling due to COVID-19.

The support target is residents with a credit rating of 7 or lower who have lived in the province for more than one year and require emergency living expenses. The support amount is up to 3 million KRW, with an interest rate of 1% per annum and a repayment period within 3 years. The province will promote the project through customized voluntary agreements considering the applicant's financial status, income, and other circumstances.

Even those with a credit rating of 6 can receive support if they are low-income groups such as basic livelihood security recipients or Gyeonggi Province emergency welfare beneficiaries. However, support will be excluded if there is a duplicate application for the same reason (medical expenses, tuition, etc.) under existing social security programs.

The Gyeonggi Welfare Foundation, which oversees the project, will select implementing agencies such as alternative financial institutions with experience in microfinance support and will launch the project once detailed support plans are prepared.

Lee Byung-woo, Director of the Provincial Welfare Bureau, explained, "The Gyeonggi Ultra-Low Credit Loan Project aims to link small loans with financial counseling to provide necessary employment, start-up, and housing welfare services to recipients," adding, "We will carefully implement the project to ensure that those receiving support can achieve practical recovery."

This content was produced with the assistance of AI translation services.