Gyeonggi-do Raises Jeonse Loan Interest Support Rate from 2% to 4%

Gyeonggi Province installed safety guardrails on the sides of staircases as part of the Senior Safety Housing Project. The photo on the left shows the stairs before the installation of the safety guardrails. Photo by Gyeonggi Provincial Government

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province is expanding the interest support rate for jeonse loan interest from the previous 2% to 4% to alleviate the interest burden on housing-vulnerable groups due to high interest rates.

On the 25th, Gyeonggi Province announced that it recently completed consultations with the Ministry of Health and Welfare on the establishment and modification of social security systems regarding the expansion plan for 'Jeonse Loan Guarantee and Interest Support for Low-Income Households.'

The core of the jeonse loan guarantee and interest support project for low-income households is to fully support the loan guarantee fee and loan interest for up to four years for basic livelihood security recipients, severely disabled persons, and others.

For example, if a household borrows 45 million KRW at an annual interest rate of 5% (annual interest 2.25 million KRW), they will receive full support for the guarantee fee and an interest subsidy rate of 4% (annual interest 1.8 million KRW).

With this consultation, the target households will reduce their annual interest burden by about 900,000 KRW.

The province has secured a related budget of 8 billion KRW for this purpose.

Along with the interest support project, next year the province will newly promote the 'Elderly Safety Housing' as a new residential environment improvement project for housing-vulnerable groups, and will also expand the 'Child Residential Poverty Household Clip Service Support,' which showed high beneficiary satisfaction after a pilot project.

This project is a pledge of Gyeonggi Province Governor Kim Dong-yeon. It supports elderly-friendly housing renovations so that basic pension recipients aged 65 and over can live safely.

In addition, the province is promoting housing benefit and youth monthly rent support projects to stabilize housing for vulnerable groups, housing environment improvement projects for low-income disabled persons, and housing upgrade support projects to assist non-residential residents in moving in.

Hong Ji-seon, Director of the Urban Housing Office of the province, said, "In Gyeonggi Province, the housing types and characteristics of housing-poor households differ by class and region," adding, "We will continue to expand demand-tailored housing welfare policies like this interest support project and steadily eliminate housing blind spots so that housing-vulnerable groups can enjoy housing stability."

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