HF releases a debt relief program for struggling borrowers

- Borrowers of HF guaranteed Jeonse or other loans can apply for the program until June 30. 

- The program aims to implement inclusive finance by supporting borrowers hit by Covid-19.   

Korea Housing Finance Corporation (HF, CEO Choi Joon Woo) announced on June 1 the launch of a program to reduce debt repayment burden of struggling borrowers to support their economic recovery, whose impediment aggravated by Covid-19. The program continues until June 30. 

The program is for borrowers of loans for which HF performed guarantee obligation(subrogation) to their lenders(financial institutions) after they failed to make principal and interest payment of HF guaranteed loans for Jeonse deposit or intermediate payment of pre-sale in lots. In particular, the program provides debt relief of up to 70 percent of principal reduction to support borrowers of written-off debts who received Covid-19 Emergency Employment Stability Subsidy from the government, and of written-off debts who suffered business setbacks or unemployment leading to more than 15% of year-on-year decrease in their income. 

 * Written-off debts: Non-performing loans unlikely to be recovered and consequently written off from the balance sheet. 

In addition, HF plans to provide debt relief on the principal for borrowers of written-off debts who are confirmed to have no assets, after examining their ages, overdue periods, and their repayment ability.

Eligible borrowers can apply for the debt rearrangement until the end of the month(June) to be fully exempted from the losses(interest) payment obligation to HF that began to accrue on the day HF made payment by subrogation to the banks. Moreover, those whose instalment payment agreements with HF were suspended can put the repayment plan back on the track upon making one-time payment of the agreed downpayment.  

In addition, the program will further reduce the repayment burden by lowering the downpayment of the instalment agreement, from 5% to 1% of the total agreed amount. 

HF commented “ The program is a part of our efforts to implement inclusive finance by reliving debt repayment burden on the low-to-moderate income groups, who met financial difficulties due to Covid-19. Application due date is June 30. When their credit is recovered to some extent after debt rearrangement, they can newly apply for HF guarantee products as well.” 

For more information, call HF Call-Center(1688-8114) or contact HF branches across the nation.