5-Year Term at 1% Annually... 'Gyeonggi Ultra-Low Credit Loan' Begins Accepting Applications on March 29

[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Province will begin accepting applications for the '2021 Gyeonggi Ultra-Low Credit Loan,' which provides emergency living funds to low-credit individuals facing financial hardship, starting from March 29.

The 'Gyeonggi Ultra-Low Credit Loan' is a project that supports loans of up to 3 million won at a low interest rate of 1% annually with a 5-year maturity term, following screening, to Gyeonggi Province residents with credit rating of grade 7 or below.

Last year, the program provided loans totaling 44.729 billion won to a total of 58,914 people across three periods in April (1st round), July (2nd round), and October (3rd round).

Eligible applicants are residents of Gyeonggi Province as of the application date, aged 19 or older, with a credit rating (NICE, KCB basis) of grade 7 or below.

From this year, the application criteria have been changed from a credit grade system to a credit score system, allowing residents with a NICE score of 724 or below or a KCB score of 655 or below to apply.

Additionally, this year the province has newly established customized loan services targeting specific groups, including 'livelihood crisis loans' and 'credit crisis youth loans,' to further strengthen the safety net for financially underserved populations.

The 'livelihood crisis loan' is a loan service for low-income residents of Gyeonggi Province who have been sentenced to a simple fine but are unable to pay due to financial hardship and other reasons.

It aims to alleviate the burden on financially vulnerable populations and those in crisis who may be unable to lead normal lives if imprisoned due to unpaid fines under current law.

The 'credit crisis youth loan' is targeted at young people under 39 years of age who are currently undergoing debt adjustment through the Credit Counseling Foundation.

In addition to loan support, it is a comprehensive service designed to support young workers in resolving economic difficulties and achieving self-reliance by linking them to enrollment in the 'Gyeonggi Province Youth Worker Savings Account,' where young workers can pay 1.2 million won in self-contribution at 100,000 won monthly over two years to receive an additional 5.8 million won, as well as providing financial education.

In addition, for socially vulnerable groups such as recipients of basic living allowances, the province plans to broadly support substantial recovery by expanding the beneficiary pool by raising the support grade to grade 6 for the financially underserved.

Applications can be submitted from March 29 to April 2 at field application centers managed by the applicant's residential city or county, or through advance reservation at the Gyeonggi Province Community Finance and Welfare Support Center (from March 29 until funds are exhausted) after receiving financial consultation.

For detailed inquiries regarding the loan application method, required documents, and other matters, contact the 'Gyeonggi Ultra-Low Credit Loan' dedicated call center (1661-3144, 1588-4413) or check the Gyeonggi Welfare Foundation website (ggwf.gg.go.kr).

Lee Byeong-woo, head of Gyeonggi Province's Welfare Bureau, said, "Through the development of various policy finance including the Gyeonggi Ultra-Low Credit Loan, we will do our best to realize inclusive community finance and welfare for all in Gyeonggi Province and to eliminate financial blind spots."