Banking Federation Prepares Expanded Support Measures for Credit Loan Genuine Borrowers... Covering Marriage, Funeral, etc.

Special limit is within 0.5 times the annual income
Up to 100 million KRW considering the purpose of funds

[Asia Economy Reporter Park Sun-mi] The credit loan limit, which is restricted to 'within annual income,' will be additionally increased from January next year only for urgent real needs such as marriage, funeral, childbirth, and surgery.

On the 10th, the Korea Federation of Banks announced that it has prepared the 'Support Expansion Plan for Real Demanders Regarding Credit Loan Annual Income Limit' (hereinafter referred to as the Support Expansion Plan), which includes the operation of special limits for real demanders. As a follow-up measure to the household debt management reinforcement plan announced last October, the Federation has been continuously discussing improvement measures with the banking sector to minimize damage to real demanders related to the credit loan annual income limit during the household debt management process.

According to the Support Expansion Plan, even if banks limit the credit loan limit to within the annual income, they can operate a loan limit exceeding the annual income (hereinafter referred to as the special limit) when urgent funds are needed for reasons such as marriage, funeral, inheritance tax, childbirth, and surgery hospitalization. The special limit is within 0.5 times the annual income and can be up to 100 million KRW considering the purpose of the funds.

For marriage, an application can be made within 3 months from the marriage registration date with a marriage certificate. For funeral and inheritance tax, a closed family relation certificate or death confirmation must be submitted within 6 months from the date of death. For childbirth, an application can be made within 3 months before or after the childbirth (expected) date with documents such as a pregnancy diagnosis or confirmation. For surgery hospitalization, proof documents such as a surgery confirmation or admission/discharge confirmation are required, and the application must be made within 3 months from the surgery or discharge date.

Considering the soundness of household debt, it will be handled in principle as an installment repayment form, but for the convenience of financial consumers, no separate expenditure proof will be requested after loan execution.

A Korea Federation of Banks official said, "After preparation processes such as system readiness by each bank, support for real demanders will be implemented in January next year," adding, "Specific application criteria, implementation status, and schedules may vary by bank, so detailed information should be confirmed through the respective banks."

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