u-Bogeumjari loans surpass two trillion won mark in October 2010

- u-Bogeumjari loan volume makes up 69% of all Bogeumjari loan programs in just four months after its release in June -

The total amount of loans extended through the u-Bogeumjari loan program released in June now exceeds the two trillion won mark.

According to the announcement by Housing & Finance (HF, CEO Joo-jae Lim) on October 25, 2010, the total serviced loan amount for the four months from June 21 (the u-Bogeumjari loan release date) reached 2.0044 trillion won (17,485 holders as of 10am on October 25).

The u-Bogeumjari loan program became the center of attention even before its release, with requests for counseling pouring in. Its total serviced loan volume reached one trillion won on August 13, 2010 only two months after its introduction. It made yet another jump to the two trillion won mark in just two months after that, testifying to its rapidly rising popularity.

The volume of lending through the u-Bogeumjari loan program currently takes up 68.8 percent of the 2.9027 trillion won total of all Bogeumjari loan products. The u-Bogeumjari loan program, although still in its early stage, appears to have emerged as the leading product of the Bogeumjari loan series with its notably high total loan volume and continuously rising monthly loan volume. 

The key to the success of the loan is its focus on lowering interest payments for low-income families by reflecting the savings from the improvement of HF's Bogeumjari loan fee system and the direct management of bonds in the calculation of interest rates.

Also, it has strongly appealed to many prospective borrowers as one of the nation's few fixed-rate mortgage loan programs that eliminates the likelihood of an increase in household debt caused by variable interest rates.

An HF official said, “Despite the slowdown of the property market, the u-Bogeumjari loan was able to quickly take root thanks to the interest and support of many customers." He added, "We will continue to make improvements to the product to stabilize the housing finance market and to help more customers benefit from this program."