Gyeonggi Provides 2.61 Billion Won in Ultra-Low Credit Loans to 2,045 Residents... 1.27 Million Won Per Person

Gyeonggi Province has provided a total of 2.61 billion won in ultra-low credit loans to 2,045 residents whose credit scores are in the bottom 10% (or the bottom 20% for basic livelihood security recipients).

The ultra-low credit loan is a flagship financial safety net program in Gyeonggi Province that offers up to 2 million won to residents aged 19 and older with credit scores in the lowest 10%. This year, the program was revamped to "2.0," and the repayment period was extended from the previous maximum of 5 years to up to 10 years in order to ease the immediate repayment burden for residents.

Gyeonggi Province has gone beyond simply offering loans, providing tailored and integrated support such as job placement and welfare services based on each borrower's circumstances by linking financial, employment, and welfare services.

On June 10, Gyeonggi Province announced that it had completed loan disbursements totaling 2.61 billion won to 2,045 people as of June 5, after reviewing applications from 2,913 individuals.

Characteristics of Ultra-Low Credit Loan Users in Gyeonggi Province

An analysis of data from the 2,045 loan users showed that the average loan amount per person was 1.27 million won, and those in their 30s accounted for the largest share at 28.7%. The most common purpose for the loans was living expenses, accounting for 79.2%, indicating that the program has made a substantial contribution to addressing livelihood crises among residents. This was followed by loan repayment and payment of public utility bills (8.6%), and medical expenses (5.4%).

By occupation, 38.9% were office workers, 35.5% were daily workers or freelancers, 14.6% were unemployed, and 11% were business owners. Among all borrowers, 22.5% (461 people) responded that they had previously used high-interest loans or illegal private lending services.

Kim Jinhyo, Director of Welfare Policy at Gyeonggi Province, stated, "Gyeonggi Ultra-Low Credit Loan 2.0 is not just about providing financial support, but also about helping residents make a real comeback by linking finance, employment, and welfare. We will continue to strengthen our support system so that financially vulnerable groups can overcome crises and achieve self-reliance."

This content was produced with the assistance of AI translation services.