Financial Services Commission Announces’Repayment Deferred Loan Plan for Soft Landing’
Loan maturity extension and repayment delay Re-extending until the end of September this year
Long-term and installment payments are possible for repayment of the deferred principal and interest after the end of the grace.
The deadline for extending the loan maturity and deferring interest repayment for small and medium-sized businesses and small business owners who have been directly or indirectly damaged by Corona 19 will be extended for six months from the end of this month to the end of September this year. In addition, after the grace period expires, the deferred principal and interest can be repaid in long-term or in installments so that the borrower’s repayment burden does not lump at one time. On the 2nd, the Financial Services Commission announced plans to extend the maturity of all financial sector loans, postpone repayment, and soft landing. The Financial Services Commission announced that it has decided to extend the relocation measures until the end of September this year, taking comprehensive consideration of the impact of Corona 19 on the real economy and opinions of industry and financial circles. Support targets are small and medium-sized businesses and small business owners who have suffered direct or indirect damage from Corona 19, and there is no delinquency such as delinquency of principal and interest, encroachment of capital, and closure of business. It is a SME loan, including loans for private business owners whose repayment deadline is reached within the enforcement period, and applies only to existing loans that were received before March 31 of last year. The Financial Services Commission also devised a’soft landing plan for deferred repayment loans’ to prevent the burden of repayment of borrowers from being lumped in from October this year after the end of the grace period. Financial companies must provide advance consulting from April 1 to allow borrowers to select the optimal repayment method, and’Five Principles of Soft Landing Support’ to select various long-term and installment repayment methods in consideration of the situation of individual borrowers. Apply. The five principles are △Providing consulting on the optimal repayment plan considering the situation of the borrower △In case of amortization of the deferred principal and interest, a repayment period of more than the grace period is given △The interest accrued during the grace period is maintained in the total amount regardless of the repayment method and period (regardless of the repayment method and period). No interest is imposed on it) △If the borrower wants to repay earlier than the original repayment plan, it is possible without an interim repayment fee △The borrower chooses the final repayment method and period after consulting and consultation. In a briefing, Dae-young Kwon, head of the Financial Industry Bureau of the Financial Services Commission, explained, “If the so-called expiration bomb or interest bomb has to pay off all at once, it is difficult for normal people to pay it back, so we are supporting a method of prolonging and dividing this part.” The Financial Services Commission presented six examples of the repayment methods available to borrowers. The first is a case of repaying twice the existing monthly repayment amount while maintaining maturity. Loan of 60 million won, interest rate 5% (fixed), remaining maturity 1 year Temporary repayment If a small business owner receiving a loan is deferred for interest repayment for 6 months, the existing interest (250,000 won) and deferred interest (25) every month for 6 months after the end of the grace period. Ten thousand won = 1.5 million won / 6 months) and 500,000 won each can be repaid. Second, it is a case of repaying 1.5 times the existing monthly repayment amount by extending the maturity for the grace period. If interest payment is deferred for 6 months under the same loan terms as in the first case, the monthly amortization amount can be reduced by extending the lump sum payment maturity by 6 months. After the end of the grace period, you can repay the existing interest (250,000 won) and the deferred interest (12.5 million won = 1.5 million won/12 months) in a total of 375,000 won each month for one year. Third, it is a case of repaying 1.2 times the existing monthly repayment amount by extending the maturity longer than the grace period. If interest payment is deferred for 6 months under the same loan terms as in the first case, the monthly amortization amount can be further reduced by extending the lump sum payment maturity of the principal by 2 years. After the end of the grace period, you can repay the existing interest (250,000 won) and the deferred interest (50,000 won = 1.5 million won/30 months) at a time of 300,000 won each month for two years and six months. Fourth, a deferment period is given, and the initial repayment is the same as the existing monthly repayment amount, and then 1.5 times the repayment is made. If interest repayment is delayed for 6 months under the same loan conditions as in the first case, the maturity of the temporary payment of principal is extended by 1 year, and the deferred interest deferment period is granted for 6 months. In this way, you can repay only the existing monthly repayment amount (250,000 won) each month, and then repay 375,000 won each month for the remaining 1 year, plus the existing interest (250,000 won) and deferred interest (12.5 million won = 1.5 million won/12 months). Fifth, this is an example of amortized repayment of principal and interest at an amount similar to the existing monthly repayment amount. This is the case when a small business owner receiving a loan of 60 million won in loans, 5% interest rate (fixed), a remaining maturity of 1 year, and a monthly installment payment of 5 million won in principal and interest repayment is delayed for 6 months. The maturity is extended by 6 months to repay the sum of the existing interest and deferred interest (12.5 million won = 1.5 million won/12 months) along with the monthly installment payment (5 million won) for one year after the grace period ends. Sixth, this is an example of amortized repayment of principal and interest at the level of half of the existing monthly repayment amount. If the principal and interest payments are deferred for six months under the same loan conditions as in the fifth case, the amortization of principal and interest can be greatly reduced by extending the maturity by 18 months. You can repay the sum of half of the original amortization (2.5 million won) of the original principal amortization (2.5 million won) plus the existing interest and deferred interest (6.25 million won = 1.5 million won/24 months). The Financial Services Commission explained that “a variety of soft landing schemes can be operated differently from the examples within the scope of complying with the five principles.” In the Q&A data, the Financial Services Commission asked, “Can the maturity be increased indefinitely when applying the soft landing plan?” “The repayment period of two to three times the grace period is appropriate as it can be burdensome for the borrower to continue the debt indefinitely. I know that there is also an opinion that it does,” he said. The Financial Services Commission said, “However, as the economic uncertainty caused by Corona 19 is large, the’Soft Landing Support Principle’ has been established to determine the level of maturity extension, etc., depending on the repayment ability of individual borrowers, and within the scope of this principle, a specific method or period will not be limited. Will” he added. Until the end of January this year, all financial sectors had a maturity extension of 121 trillion won (371,000 cases), deferred principal repayment of 9 trillion won (57,000 cases), deferred interest repayment of 163.7 billion won (13 thousand cases), and a total of 130 trillion won (440,000 won). 2,000 cases) are supported. By Park Hyun, staff reporter