CCRS Expands Small Loan Support to Faithful Repayers in Private Financial Institutions’ Independent Debt Adjustment Programs

Faithful Repayment for Over Six Months
Eligible for Up to 15 Million Won in Loans
Targeting 420 Billion Won in Small Loan Supply This Year
Bridging Gaps in Inclusive Finance for Low-Income Households

The Korea Credit Counseling & Recovery Service (CCRS) will expand eligibility for its small loan support program to include users of private financial institutions' independent debt adjustment programs. The aim is to address gaps in policy-based inclusive finance by ensuring that necessary financial support continues even after debt adjustment by private financial institutions.

As of May 15, CCRS announced that individuals demonstrating faithful repayment under private financial institutions’ independent debt adjustment programs will also be eligible to apply for small loans from CCRS. This policy improvement is intended to enhance financial accessibility for users of such programs in line with the government’s inclusive finance expansion plan. Previously, small loans were only available to those faithfully repaying under CCRS debt adjustment or through court-managed personal rehabilitation programs.

Since 2006, CCRS has supported the economic recovery of debt adjustment program participants by providing living expenses, business operating expenses, and tuition loans at low interest rates between 2% and 4% per annum. The maximum support limit is 15 million won. With this expanded eligibility, those who have been faithfully repaying under private financial institutions’ independent debt adjustment programs for six months or longer can now apply for small loans under the same criteria as existing CCRS debt adjustment participants.

Kim Eun-kyung, Chairperson of CCRS, stated, “We will strengthen the link between private financial institutions’ debtor repayment support and the CCRS small loan program to establish a virtuous cycle that ensures necessary financial support is provided even after debt adjustment.” She added, “We plan to build a more comprehensive financial safety net so that those who are faithfully repaying debt can stably return to economic activity.”

CCRS aims to supply 420 billion won in small loans in 2026, which is an increase of 300 billion won from the previous annual level of 120 billion won. CCRS plans to further utilize credit guarantees from the Korea Inclusive Finance Agency to ensure a stable supply of small loans. Users of private financial institutions’ independent debt adjustment programs who wish to apply for CCRS small loans can contact the CCRS counseling center for inquiries. Detailed information on eligibility and application procedures can be found on the CCRS website, app, and at the counseling center.

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