Gyeonggi Province Expands Support to Boost Household Economy, Providing Small Loans from KRW 22.6 billion Budget

Createdd 2018-04-09 Hit 309

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Gyeonggi Province is expanding the services of the Good Morning Loan and Restart Loan, which are part of the province’s small-loan system for residents, in order to stabilize the household economy of people suffering from the recent economic recession.

In its fourth year of implementation, the Good Morning Loan is an unsecured low-interest loan servicing system to support the self-sustainability of financially disadvantaged small businesses that often have no options other than high-interest private loans. The system has been implemented as part of Gyeonggi Province’s microcredit project.

Those eligible for general support are individuals with low income and low credit (annual income of less than KRW 43 million and credit rating below 6) or the socially disadvantaged (breadwinners who retired in their 50s or have lost their jobs, the disabled, multicultural families, single-parent families, North Korean refugees, etc.). They can borrow up to KRW 30 million for starting a new business or up to KRW 20 million for improving their business.

Special support is available to small business owners who have been recommended by city and county welfare workers for Good Morning Loan services. They will be eligible for loans of up to KRW 50 million.

The Restart Loan is a project to provide unsecured and low-interest small loans for those paying off debts or who have completed repayments after adjusting their debt through the Credit Counseling and Recovery Service. The purpose of this project is to help overcome the vicious cycle of defaulting again due to rises in living expenses such as medical costs, or due to the need for funds to operate a business or to pay off high-interest loans during the repayment period.

To apply for the Good Morning Loan services, visit the branch office of the Gyeonggi Credit Guarantee Foundation (1577-5900) that presides over your business location as shown on the business registration certificate, or visit the Cyber Credit Guarantee Center via the website. To obtain support for the Restart Loan, first check your eligibility through the Credit Counseling and Recovery Service Counseling Center (1600-5500), and submit the required documents as directed by counselors at each branch.