Gwangju Bank's Youth Customized Jeon-Wolse Special Loan Gains Popularity

[Asia Economy Reporter Kim Min-young] Gwangju Bank announced on the 20th that it will expand the limit of its youth-tailored jeonwolse (monthly rent and deposit) special loan to 100 billion KRW and extend the sales period.

The Gwangju Bank youth-tailored jeonwolse special loan, which applies interest rate discounts to the youth jeonwolse loan jointly launched by banks in May last year and began sales in June of the same year, has currently exceeded the first supply amount of 50 billion KRW, achieving sales of 51 billion KRW (1,060 people).

The interest rates are low, ranging from a minimum annual rate of 2.51% to a maximum of 2.73% for jeonwolse deposit loans, and from a minimum annual rate of 2.32% to a maximum of 2.42% for monthly rent loans, and refinancing of existing loans is also possible, making it popular, according to analysis.

Accordingly, Gwangju Bank decided to increase the supply amount to 100 billion KRW and extend the program to help resolve housing concerns among the youth.

This special loan is available to applicants who can obtain a guarantee certificate from the Korea Housing Finance Corporation and are homeowners without a house or prospective homeowners aged between 19 and 34, whose combined annual income with their spouse is 70 million KRW or less. University students without income can also apply.

The eligible housing includes apartments, row houses, detached houses, multi-family houses, and multi-unit houses under the Housing Act, as well as quasi-housing (officetels, senior welfare housing). The housing must be used for actual residence, have no rights infringement on ownership in the building registry, and the lease deposit must be 500 million KRW or less under the lease contract.