Eligibility for Jinggeomdari Jeonse Loan Guarantee expanded and interest rate lowered today

- KHFC eases eligibility for a couple with a combined annual income of KRW 50 million or less

- Prime rate offered by signing business agreements with KB, Woori Bank, and EG Loan

The Korea Housing Finance Corporation (KHFC, CEO Seo Jong-dae) announced that the eligibility for Jinggeomdari (“stepping stone”) Jeonse Loan Guarantee, which is designed to alleviate the interest rate burden on low-income jeonse loan borrowers, will be eased to include couples with combined annual income of KRW 50 million or less from the current KRW 30 million or less.

The Jinggeomdari Jeonse Loan Guarantee is a special guarantee available to low-income citizens using high-interest jeonse loans offered by non-banking financial institutions such as savings banks, credit unions, and community credit cooperatives to switch to guaranteed bank loans.

KHFC signed “Business Agreements to Promote Jinggeomdari Jeonse Loan” with KB, Woori Bank, and EG Loan to apply a prime rate as low as 4.6 percent per annum and help borrowers easily check the guarantee limit and interest rates through EG Loan beginning late June.

Also, customer convenience has been improved by replacing the financial transaction confirmation document, which had to be submitted by customers using the guarantee service, with the credit information inquiry list by the Korea Federation of Banks. Customers can select a bank branch where they plan to take out a loan at the EG Loan website, which is frequented by customers planning to use loans from non-banking financial institutions.

“The number of low-income citizens using high-interest jeonse loans from non-banking financial institutions is increasing due to the recent rise in jeonse prices. Through the promotion of the Jinggeomdari Loan, its interest rate has been lowered to alleviate the burden of housing cost on low-income citizens,” said an official at KHFC.