Interest Rate for 'Small Living Expense Loans' Decreases by 0.5%p When Joining Welfare Membership

Additional Linkage Benefits for Financial, Employment, and Welfare Coordinators
December Announcement of Next Year's Integrated Support Promotion and Development Plan

Starting from the 28th, users of small livelihood loans from the Korea Inclusive Finance Agency who join the Welfare Membership program of the Ministry of Health and Welfare will receive a 0.5 percentage point interest rate reduction benefit on their loans. Additionally, customers receiving employment support from the Ministry of Employment and Labor through the Korea Inclusive Finance Integrated Support Center or the Korea Inclusive Finance 'Itda' app will be able to use credit and debt management consulting services from the Korea Inclusive Finance Agency.

On the 27th, the Financial Services Commission announced these additional linked benefits for those connected to finance, employment, and welfare. This is part of the financial, employment, and welfare integrated support measures jointly announced by related agencies in June.

The small livelihood loan system was introduced last year to support urgent livelihood needs of vulnerable groups with credit scores in the bottom 20% and annual incomes below 35 million KRW, while minimizing exposure to illegal private loans. From the 28th, customers applying for small livelihood loans through the Korea Inclusive Finance Integrated Support Center who submit a 'Welfare Membership Enrollment Confirmation' will receive a 0.5 percentage point interest rate reduction benefit.

The Welfare Membership Enrollment Confirmation can be issued at local government administrative welfare centers (community service centers). Initially, support will be provided to customers who visit in person, with plans to expand to non-face-to-face customers in the future.

Credit and debt management consulting is a service where financial experts such as credit counselors and financial welfare counselors check the credit scores and debt status of consulting recipients monthly (up to six months) and provide one-on-one customized solutions to improve financial life. Previously, only users of policy-based inclusive finance products such as the Workers' Sunshine Loan and small livelihood loans could use this consulting service.

With this system improvement, those receiving employment support from the Ministry of Employment and Labor through the Korea Inclusive Finance Integrated Support Center can use the consulting service even if they do not use policy-based inclusive finance products. The Korea Inclusive Finance Agency plans to notify eligible individuals about the credit and debt management consulting system via alert messages (texts).

The Financial Services Commission plans to review the integrated support achievements for this year with related agencies in December and announce plans for the promotion and development of integrated support for next year. These plans are expected to include ▲expansion of integrated support entry channels and ▲expansion of integrated support services.

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