Gyeonggi Province Expands Jeonse Loan Interest Support for Housing-Vulnerable Populations from 2% to 4%

[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Province is expanding its jeonse loan interest support rate for housing-vulnerable populations from the existing 2% to 4%.

According to Gyeonggi Province on the 25th, the province completed consultations with the Ministry of Health and Welfare on a "Social Security System" on the 20th regarding an expansion plan for "Jeonse Loan Guarantees and Interest Support for Low-Income Households."

The "Jeonse Loan Guarantees and Interest Support for Low-Income Households" project provides full loan guarantee fees and loan interest support for up to four years to basic livelihood security recipients and people with severe disabilities.

For example, if a household borrows 45 million won at an interest rate of 5% (annual interest of 2.25 million won), they will receive full guarantee fees and interest subsidy of 4% (annual interest of 1.8 million won).

Through this consultation, eligible households will reduce their annual interest burden by approximately 900,000 won.

A total budget of 8 billion won has been secured for this project.

Along with the interest support project, the province will newly launch "Senior Safety Housing" as a new residential environment improvement project for housing-vulnerable populations next year and will also expand the "Clean Service Support for Children in Housing-Poor Families" program, which showed high recipient satisfaction following pilot implementation.

The newly established "Senior Safety Housing" is a project that supports senior-friendly home modifications so that basic pension recipients aged 65 and older can live safely.

According to a 2021 Gyeonggi Province survey on elderly living conditions, the fall experience rate among elderly with monthly income under 1 million won was 11.8%, compared to 6.2% for those with monthly income of 2 million won or more, confirming that fall rates increase with lower income.

This project supports the installation and reinforcement of indoor safety facilities such as non-slip pads and ramps, brightens indoor lighting, and removes doorsteps to improve the residential environment.

Next year, the project will be implemented first for 200 households (project cost of 1.02 billion won) with plans to gradually expand.

The "Clean Service Support for Children in Housing-Poor Families" program, which is in its second year of implementation following a 2021 pilot, will also expand its scale by more than five times, from 48 households this year to 280 households next year.

This is because the project was selected in the 2023 "Lottery Fund Support Project" public announcement overseen by the Ministry of Strategy and Finance, securing 844 million won in national funding.

The project, which invests the 844 million won as is, provides support for mold and pest removal, wallpapering, and air conditioning systems to child households suffering from damage caused by mold and pests or facing difficulties due to winter cold and summer heat, thereby improving residential hygiene and living conditions.