Sunshine Loan Youth for Young Adults, Application Amount Increased to 5 Million Won... Pre-Applications Start from the 15th of This Month

From the 18th, the Hetsalron Youth General Living Fund increases from 3 million to 5 million won
Total support scale expands to 200 billion won... Pre-application available from the 15th

[Asia Economy Reporter Kim Min-young] The application amount for the Youth Sunshine Loan (Youth), which supports living expenses for young people struggling due to the novel coronavirus infection (COVID-19), will be increased from 3 million won to 5 million won. Accordingly, the total support scale this year will also be expanded to 200 billion won.

The Korea Inclusive Finance Agency announced on the 13th that it will provide special guarantee support for the Youth Sunshine Loan based on this content from the 18th of this month until the end of the year.

The Youth Sunshine Loan is a policy financial product launched on January 22 to provide low-interest living expenses and other support to college students, unemployed youth, and young workers. In the first half of this year, it supported 19,000 people with 57.6 billion won, contributing to alleviating financial difficulties for young people preparing for studies and employment.

The Korea Inclusive Finance Agency decided to raise the application amount from the existing 3 million won to 5 million won through the special guarantee. For young people already using the Youth Sunshine Loan, a non-face-to-face screening process will be newly established to provide faster support to young people who have become more vulnerable due to prolonged employment difficulties caused by the COVID-19 situation.

This special guarantee can be pre-applied for through the Korea Inclusive Finance Agency’s application (app) starting from the 15th. After applying, applicants must bring documents according to eligibility criteria and make a reservation to visit the nearest Integrated Support Center for Inclusive Finance to undergo guarantee screening starting from the 18th. Once the guarantee is approved, loans can be executed through the apps of the handling banks for the Youth Sunshine Loan: Industrial Bank of Korea, Shinhan Bank, and Jeonbuk Bank.

However, for existing users applying for additional use, since they have already undergone face-to-face consultation and screening, the procedure will be simplified so that all steps from application to screening, approval, and execution can be quickly supported non-face-to-face through the Korea Inclusive Finance Agency app without visiting the Integrated Support Center for Inclusive Finance.

The application deadline for the special guarantee is December 31 of this year, and it can only be used once regardless of the amount used. It is necessary to use it carefully considering the purpose of funds and repayment plans. After the special guarantee period ends, users can use the general guarantee of the Youth Sunshine Loan as before.

Director Lee Gye-moon said, “To alleviate the financial difficulties of young people struggling due to COVID-19, the government, National Assembly, and Korea Inclusive Finance Agency closely collaborated to secure funds for expanding support for the Youth Sunshine Loan through the third supplementary budget,” and added, “I hope this special guarantee will be a strength for young people and college students who urgently need funds or are preparing for employment to overcome difficulties.”

He continued, “However, excessive debt may lead to problems such as credit rating downgrades, so when using it, you must carefully consider whether the funds are truly necessary and whether the loan repayment plan is appropriate.”

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