Gyeonggi-do Eases High-Interest Burden on Vulnerable Groups... Support Rate Raised to 4%

Gyeonggi Provincial Government Gwanggyo New Office Building

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will expand the loan guarantee and interest support rate for low-income households' jeonse deposits from the previous 2% to 4% starting this year.

The loan guarantee and interest support project for low-income households' jeonse deposits is a program introduced in July 2019, in which Gyeonggi Province, Korea Housing Finance Corporation, and NH Nonghyup Bank have signed an agreement to support loan guarantee fees and loan interest for up to four years for basic livelihood security recipients, near-poverty groups, and persons with severe disabilities who have difficulty obtaining loans from financial institutions.

To alleviate the interest burden on vulnerable groups due to high interest rates, the province expanded the interest support rate from 2% to 4% on December 20 last year.

The increase in the interest support rate applies not only to new loan applicants this year but also to those who have been using loans from 2019 to 2022, effective from January 16 this year.

New loan applicants can visit the eup, myeon, or dong administrative welfare centers or the NH Nonghyup Bank Central Association (excluding unit and regional Nonghyup branches) to apply.

Existing loan users must visit NH Nonghyup Bank and sign a special agreement consenting to the increase in the interest support rate. If the loan has been fully repaid, reapplication is not allowed.

Detailed application methods can be confirmed through the Gyeonggi Province call center (031-120) or the NH Nonghyup Bank call center (1588-2100).

Kim Tae-cheol, head of the Residential Welfare Team of the province, said, "By raising the interest support rate, we expect to reduce the loan interest burden on low-income households, thereby helping to ease housing costs and stabilize housing. We will continue to strive to implement timely residential welfare policies, such as raising the interest support rate in response to the high-interest environment."