Gyeonggi-do Offers Up to 3 Million KRW Loans at 1% Annual Interest for Low-Credit Borrowers

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province is launching a 'Super Low Credit Loan' program that provides up to 3 million KRW at low interest rates to low-credit individuals struggling with their livelihood.

Gyeonggi Province announced on the 3rd that starting from the 7th of this month, it will begin accepting applications for the Super Low Credit Loan, which offers up to 3 million KRW at an annual interest rate of 1% with a 5-year maturity, after screening, to low-credit residents aged 19 or older who need living expenses but cannot obtain loans from formal financial institutions due to low credit ratings.

The support types include ▲screened loans ▲loans for victims of illegal private loans ▲livelihood (fine) crisis loans ▲credit crisis youth loans.

The screened loan support targets residents of Gyeonggi Province as of the application date, aged 19 or older, with a NICE Credit Information credit score of 724 or below, or a KCB credit score of 670 or below.

Loans for victims of illegal private loans are provided based on counseling results after reporting to the Gyeonggi Province Illegal Private Loan Center for victims of illegal debt collection and related damages.

The credit crisis youth loan targets youth under 39 years old who have been delinquent on Korea Student Aid Foundation student loans for six months or more, or have had debt adjustment through the Credit Recovery Committee for six months or longer.

The livelihood crisis loan is for low-income residents who have been sentenced to simple fines and are unable to pay the fines due to livelihood difficulties.

Applicants wishing to apply for loans must make a prior reservation at the Gyeonggi Province Financial Welfare Center and undergo financial counseling before submitting their application. For detailed information on prior reservations and loan application methods, please check the dedicated call center for 'Gyeonggi Super Low Credit Loan' (1661-3144, 1588-4413) or the Gyeonggi Welfare Foundation website (ggwf.gg.go.kr).

Last year, the province provided loan funds totaling 46.991 billion KRW to 26,983 people in three rounds: March (1st), July (2nd), and October (3rd).

This year, the province plans to operate follow-up management programs such as financial counseling, financial education, and linkage to jobs and welfare services to help residents in need of financial welfare achieve practical recovery.

A provincial official emphasized, "We will do our best to strengthen the social safety net for financially vulnerable groups facing increased economic difficulties due to the prolonged COVID-19 pandemic and to eliminate financial blind spots."

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