HF Strengthens Guarantee for Underprivileged Groups
- Date 2018-08-06
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HF Strengthens Guarantee for Underprivileged Groups
- Households with grandparents and multicultural families now covered by the social integration benefits
- HF Jinggeomdari Jeonse Loan Guarantee expanded to cover jeonse loans taken out last year
Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) announced on the 6th that it has expanded its scope of guarantee for the ‘Special Jeonse Loan Guarantee for Social Integration’ and ‘Jinggeomdari (stepping stone) Jeonse Guarantee*’.
* For those on a high-interest jeonse loan from a non-banking finance institution, the Jinggeomdari Jeonse Loan Guarantee allows them to switch to a lower-interest jeonse loan from a bank.
The Special Jeonse Loan Guarantee originally covered the recipients of the National Basic Livelihood Security, the near poor class, those with severe disabilities, and North Korean defectors. Now the scope has expanded to include ▲ households living together with grandparents, ▲ multicultural families, ▲ permanent rental housing residents, and ▲ young people discharged from child welfare institutions.
The maximum amount of the guarantee is KRW 45 million, and the fee is 0.1%-points lower than that of ordinary jeonse loan guarantee products. Furthermore, in the case that the guaranteed amount is KRW 200 million or less, HF charges an annual interest rate of only 0.05%. The eligibility requirements have also been eased through eliminating the repayment capacity analysis and credit evaluation criteria.
In addition, the Jinggeomdari Jeonse Loan Guarantee has covered jeonse loans taken out from non-banking finance institutions before December 31, 2016. HF has also extended the period by one year to cover non-bank loans taken out until December 31, 2017.
An HF official said, “HF will continue to improve our guarantee system to support financially vulnerable groups. We will make efforts to make our housing finance services people-centered and inclusive.”