Gyeonggi Province Launches Illegal Loan Shark Victim Support Loan Program; Expands Youth Credit Crisis Loans

[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Province will begin accepting applications starting July 26 for the "2021 Gyeonggi Extremely Low Credit Loan" program that provides emergency living funds to low-credit residents facing financial hardship.

The "Gyeonggi Extremely Low Credit Loan" is a program that provides loans of up to 3 million won at a low annual interest rate of 1% with a 5-year maturity term to low-credit Gyeonggi residents after undergoing examination.

In the first half of this year (March), the province provided loans totaling 20.982 billion won to a total of 13,102 applicants. Eligible applicants must be Gyeonggi residents as of the application date, aged 19 or older, with a NICE credit score of 724 or below or a KCB credit score of 655 or below.

In terms of existing standards, this corresponds to credit grade 7 or below.

In addition to screening loans based on credit scores, the province is also operating three other programs: ▲Illegal loan shark victim loans ▲Youth credit crisis loans ▲Livelihood crisis loans. The loan amounts and interest rates are the same as screening loans.

First, as cases of illegal loan shark fraud impersonating government and public support programs have increased, the province has newly established an "Illegal Loan Shark Victim Loan" program to support victims.

Gyeonggi residents who have become victims of illegal loan sharks can report their damage to the Gyeonggi Province Illegal Loan Shark Damage Reporting Center, and after receiving victim counseling, they can receive loan services within a limit of 3 million won.

The "Youth Credit Crisis Loan" program, which has been implemented since the first half of this year, provides not only loans but also financial education to youth under 39 years old to support their self-reliance.

Starting with this intake period, in addition to existing credit rehabilitation committee debt adjustment subjects, young adults with Korea Student Loan Company loan delinquency of six months or longer can now apply for loans.

Additionally, the province plans to continue promoting the "Livelihood Crisis Loan" program for low-income residents who have been sentenced to simple fines and are unable to pay due to financial hardship and other reasons.

Applications are accepted from July 26 through online advance reservations at Gyeonggi Welfare Foundation (ggwf.gg.go.kr) and the Community Financial Welfare Support Center (gcfwc.ggwf.or.kr) after financial counseling.

Reception closes when the project budget is exhausted. For more information about loan application procedures and required documents, applicants can contact the dedicated call center for the "Gyeonggi Extremely Low Credit Loan" (1661-3144, 1588-4413) or visit the Gyeonggi Welfare Foundation website (ggwf.gg.go.kr).

Moon Jung-hee, Director of the Welfare Division of Gyeonggi Province, stated: "We will do our best to strengthen the social safety net for the financially vulnerable population and close financial blind spots as economic difficulties are intensifying due to COVID-19."