HF Expands Special Jeonse Loan Guarantee to Those Applying for Credit Restoration
- Date 2018-09-03
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HF Expands Special Jeonse Loan Guarantee to Those Applying for Credit Restoration
- HF strengthens guarantee services to help socially vulnerable groups get their finances back on track
Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) stated on the 3rd that it will make its Special Jeonse Loan Guarantee available to those applying for credit restoration.
Up until now, the special guarantee program has only been offered to those currently on a debt repayment schedule run by credit restoration support agencies*. However, from now on, the expanded program will cover ▲ those who have completed the credit restoration process run by the Credit Counseling & Recovery Service and are currently in their third year or less from the date of full repayment, ▲ those who have received a bankruptcy discharge and are currently in their eighth year or less from the date of receipt, and ▲ those who have been released from their debt obligations after paying off their debt on their debt adjustment schedule and are currently in their eighth year or less from the date of their debt repayment plan approval.
* Credit Counseling & Recovery Service, Korea Asset Management Corporation, and MG Credit Information Service
The maximum amount of this loan guarantee is KRW 45 million. The guarantee fee is 0.05% - 0.15% per year, which is 0.1%-points lower than that of regular jeonse loan guarantees. HF has also eased the eligibility requirements by eliminating its assessment on the borrower’s credit and ability to repay the loan.
An HF official said, “For those who have paid off their debt on a debt adjustment schedule or have been discharged from their debt obligations but are not eligible for regular jeonse loans due to their poor credit record, we provide state-sponsored loan guarantees to help them get their financial life back on track. We will continue to address gray areas for financially vulnerable groups.”
On August 6, 2018, HF expanded the Special Jeonse Loan Guarantee program to cover socially underprivileged groups, including multi-generation families, multicultural families, permanent rental housing tenants, and young people discharged from orphanages or other child care facilities.