Chungnam, Low-Interest Loans for 'Living Stability Funds'

by Jeong Ilwoong

Published 30 Jun.2020 16:49(KST)

[Asia Economy (Naepo) Reporter Jeong Il-woong] Chungnam Province will provide small loans such as emergency living funds to financially marginalized groups.

On the 30th, at the provincial office, Chungnam Governor Yang Seung-jo, Chungnam Credit Guarantee Foundation Chairman Yoo Seong-jun, and Credit Recovery Committee Chairman Lee Gye-moon met and signed a business agreement to implement the ‘The Happiness Chungnam Loan’.

‘The Happiness Chungnam Loan’ is designed to help residents who are struggling with daily life due to the aftermath of the novel coronavirus infection (COVID-19) but have low credit ratings and are driven to high-interest illegal private loans.

According to the agreement, the province will oversee ‘The Happiness Chungnam Loan’ and entrust 2 billion KRW in project funds to the Credit Guarantee Foundation over the next five years. The Credit Guarantee Foundation will handle project fund settlement tasks such as verifying support performance status, and the Credit Recovery Committee will be responsible for loan execution and post-management.

The support scale includes up to 15 million KRW per person for living stabilization funds such as hospital bills and living expenses (interest rate within 4% per annum), and up to 10 million KRW per person for tuition fees (2% per annum interest rate). The repayment period is up to five years, with the condition of equal principal and interest installment repayment.

The support targets are residents who have been repaying without delinquency for more than six months after debt adjustment confirmation by the Credit Recovery Committee or those who have fully repaid within the last three years.

Applications can be made following guidance from the Integrated Financial Support Centers for the Underprivileged located in Cheonan, Dangjin, and Hongseong, or the Credit Recovery Committee Counseling Centers.