According to the financial sector on the 4th, SGI Seoul Guarantee will supply a new jeonse guarantee that can be repaid in installments and is discussing the timing of product launch with commercial banks.
The financial authorities predicted that the product subscription will be made next month.
The financial authorities plan to increase the limit of the product to 500 million won. The limit of the amortization cheonsei guarantee launched at the end of October last year by the Financial Services Commission and the Korea Housing Finance Corporation is more than doubled compared to the 222 million won.
In general, loans from households pay only interest and then pay the principal in full at maturity, so you have to pay the same interest as the loan principal does not decrease.
However, if part or all of the principal is repaid in installments, the principal of the loan decreases, which reduces the interest burden.
You can also expect tax-free and income deduction benefits through amortization of cheonsei loans. This is because, instead of deposits or savings, which are subject to 14% tax on interest income, you do not have to pay taxes if you pay off the loan with that money.
In addition, since principal and interest repayment expenses are recognized as expenditures at the year-end settlement, income deductions can be received within the limit of 7.5 million won for 40% of principal and interest payments.
The financial authorities plan to activate the amortization payments by expanding the limit. In addition, administrative guidance has also been announced to give benefits to banks that handle a lot of installment payments from household loans to the Housing Finance Credit Guarantee Fund.
Meanwhile, the Financial Services Commission is also considering expanding programs to support loans for cheonsei and monthly rents for youth under the age of 34.
The guarantee limit per person is raised from the current’deposit 70 million won, monthly rent less than 500,000 won’ and lowered the guarantee rate from 0.05% to 0.02%. The total supply limit is abolished. Detailed plans related to youth jeon and monthly rent will be included in the’Household Debt Management Plan’ to be announced in the middle of this month.
Kim Ju Ogija [email protected]