Gyeonggi Province to Resume 'Extreme Low Credit Loan' on May 6... Up to 2 Million Won at 1% Annual Interest

Gyeonggi Province is resuming its extreme low credit loan program, which allows borrowers to repay loans ranging from a minimum of 500,000 won to a maximum of 2 million won at an ultra-low annual interest rate of 1% over a period of 10 years. This follows a previous round of the program held in February.

On April 27, Gyeonggi Province announced that it will begin accepting applications for the second round of the "Gyeonggi Extreme Low Credit Loan 2.0" program, aimed at supporting the financial stability of vulnerable groups, starting from May 6. This round will accept not only online applications but also loan reservations via phone calls.

Eligible applicants are Gyeonggi residents aged 19 or older who have lived in the province for at least one year as of the application date, and who have a credit score in the bottom 10% (KCB 675 points or below, NICE 724 points or below). However, certain groups are excluded from the program: overseas Koreans, foreigners, or those residing abroad; individuals who have not fully repaid loans from the Gyeonggi Extreme Low Credit Loan program between 2020 and 2022; those with long-term delinquent debt (including loan or credit card arrears); and those registered for financial misconduct or court-ordered defaults.

Recipients of the National Basic Livelihood Security Program, those in the near-poverty class, and single-parent families may apply with a credit score in the bottom 20%. The loan amount, determined after a review process, ranges from a minimum of 500,000 won to a maximum of 2 million won per person. The loan carries a fixed annual interest rate of 1%, with a repayment period of up to 10 years. The total available loan amount for this round is 3.44 billion won.

For this round, Gyeonggi Province has lowered barriers and improved accessibility so that more residents can conveniently apply. As before, applications can be easily submitted online through the "Gyeonggi Minwon 24" website.

Digital-vulnerable groups who are not comfortable with online applications can make a reservation through the dedicated call center (1800-6537) and then visit either the Gyeonggi Provincial Financial Welfare Support Center or their local administrative welfare center to apply in person.

Additionally, those with severe disabilities or illnesses who have difficulty moving can request in-person application support through the call center. In such cases, staff from the local administrative welfare center will visit the applicant to help with the process.

Gyeonggi 'Ultra-Low Credit Loan 2.0' Information Poster

Phone reservations and online applications are not processed separately, and duplicate applications are not allowed. Even if online applications close early, those who have made a phone reservation will still be able to apply up to a certain number of people through a callback service.

All loan applicants are required to undergo mandatory financial assessment and consulting. Even after receiving the loan, they will continue to receive comprehensive support, such as employment and welfare services, through the Gyeonggi Provincial Financial Welfare Support Center.

Kim Jinhyo, Director of Welfare Policy at Gyeonggi Province, stated, "This second round of the program has improved the application process so that residents who find online applications difficult can also participate. We will continue to build a more robust financial safety net to ensure that economically vulnerable residents are not left behind."

The first round of applications, held in February, closed early in just 30 minutes. At that time, 1,618 people applied for a total of 2.06 billion won in loans, with 75.2% of applicants requesting loans for living expenses.

For more information on this loan program, please refer to the notices on the Gyeonggi Province or Gyeonggi Welfare Foundation websites, or contact the Gyeonggi Province Call Center at 120 (dial 120 without an area code).

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