Gwangju City Expands Eligibility for Interest Support on Newlywed Couple Jeonse Loan

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] Gwangju Metropolitan City announced on the 28th that it will expand the eligibility for the ‘Housing and Urban Fund Newlywed Couple Exclusive Buttress Jeonse Loan Interest Support Project.’

This project, which has been implemented since July 1, aims to alleviate housing cost burdens by supporting loan interest for newlywed couples and to create a marriage and childbirth-friendly environment.

Only newlywed couples who newly borrowed the ‘Housing and Urban Fund’ newlywed couple exclusive jeonse loan after January 1 of this year were eligible for support. The number of ‘Housing and Urban Fund Newlywed Couple Exclusive Jeonse Loans’ dropped sharply by about 40%, from 693 cases in 2020 to 266 cases in 2021, and the number of support applications was low.

Accordingly, Gwangju City decided to expand the support target to include those who extended their loans in 2021.

The revised eligibility criteria apply to newlywed couples without housing who either newly borrowed or extended the ‘Housing and Urban Fund Newlywed Couple Exclusive Jeonse Loan’ after January 1 of this year and who are scheduled to marry within three months or have been married for less than seven years.

However, both the resident registration and the leased housing must be located in Gwangju.

Support is provided by applying a differentiated interest rate based on the number of children: 0.5% for no children, 0.7% for one child, and 1.0% for two or more children on the monthly loan amount’s interest.

Support is limited to the total interest amount paid to the bank, and the period is up to six years from the loan date.

Applications can be submitted on the Gwangju I-Kium website by attaching a ‘Loan Confirmation Letter’ by October 31. The ‘Loan Confirmation Letter’ can be issued at the five banks handling the service: NH Nonghyup, Woori Bank, KB Kookmin Bank, Shinhan Bank, and IBK Industrial Bank of Korea.

Gwangju City plans to send interest claim notification messages to eligible applicants after reviewing the application documents.

This year’s eligible applicants can claim by attaching financial transaction statements such as loan interest calculation statements and resident registration copies from November 1 to 15. Interest will be paid until December.

In particular, since the interest support project started in July due to the time required for preliminary procedures such as consultations on the establishment of social security systems with the Ministry of Health and Welfare, support will be retroactively applied from January starting in December.

In this regard, the newlywed couple exclusive buttress jeonse loan has been implemented since 2018, and the ‘Housing and Urban Fund’ allows loans up to 80% of the lease deposit for houses with exclusive area of 85㎡ or less and lease deposits of 200 million KRW or less.

Also, the target is newlywed couples who are household heads without housing, who have signed a housing lease contract and paid at least 5% of the lease deposit, with a combined annual income of 60 million KRW or less and net assets of 292 million KRW or less. Detailed information can be found on the ‘Gwangju I-Kium’ website.

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