5,499 Applications for Small Livelihood Loans... Average Amount 640,000 Won

Seomin Geumyung Jinheungwon's 'Small Livelihood Loan' One Week After Launch

On the 27th, citizens visiting the Jung-gu Central Microfinance Integrated Support Center in Seoul applied for loans from a small living expense loan product offering up to 1 million won with an annual interest rate of up to 15.9%. Photo by Jinhyung Kang aymsdream@

It was revealed that approximately 5,499 loan applications were received within a week of the launch of the small living expense loan. The average loan amount per person was estimated to be about 640,000 KRW.

The Korea Inclusive Finance Agency announced on the 1st that out of 6,250 small living expense loan consultation reservations from the 27th to the 31st of last month, 5,747 consultations were conducted. The small living expense loan is a policy that provides emergency loans of up to 1 million KRW to low-credit borrowers. The interest rate is around 15.9% per annum, but it is reduced to 9.4% per annum upon completion of education and faithful repayment.

Among the consultations, 5,499 loan applications were actually submitted. According to the Korea Inclusive Finance Agency, 248 cases did not meet the low-credit or low-income requirements, or were disqualified due to tax delinquency or financial disorder, and thus were not eligible for support.

The total loan application amount was 3.51 billion KRW, with an average loan amount of 640,000 KRW. Among the applications, 3,874 cases were for a loan amount of 500,000 KRW, and 1,625 cases exceeded 500,000 KRW with documented use of funds such as hospital bills.

Additionally, before the overall loan consultations, 2,242 applications for debt adjustment consultations, 1,298 for welfare linkage, 583 for employment support, and 593 for dormant deposit inquiries were supported as part of comprehensive consultations.