Transfers to 500 million households can be amortized

SGI Seoul Guarantee is in discussion with commercial banks to launch products next month

A chartered loan product that can be paid off by dividing the principal will be launched next month. The guarantee limit is also raised to 500 million won, and it is expected that the number of beneficiaries will increase.

According to the financial sector on the 4th, SGI Seoul Guarantee will provide a jeonse guarantee up to 500 million won (300 million won for the inhabitants) that can be repaid in installments and is discussing the timing of product launch with commercial banks. It is part of the activation of the installment repayment out-of-house loans announced by the Financial Services Commission earlier this year in its business plan.

In general, mortgage loans pay off principal and interest together, but jeonse loans pay only interest and pay off the principal at maturity. The loan principal does not decrease, so you have to pay the same interest all the time. If part of the principal is repaid in installments before maturity, the interest burden will also decrease. Income deduction benefits are also available through amortization. For year-end settlement, you can receive an income deduction for 40% of the principal and interest payment amount (up to 7.5 million won).

This is why the Financial Services Commission launched an amortization cheonsei guarantee last October. However, many pointed out that there was a limit as the guarantee limit was only 222 million won at the time. Until the 25th of last month, the cumulative number of applications was 502, and the scale was only 63.5 billion won.

The financial authorities also announced an administrative guidance that would benefit banks that handle a lot of amortization loans from the housing finance credit guarantee fund.

Meanwhile, the Financial Services Commission is also considering expanding the program to support monthly rent loans for young people under the age of 34. The per-person guarantee limit is raised from the current’deposit 70 million won and 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 the monthly loans for young people will be included in the’Household Debt Management Plan’ announced in the middle of this month.

/ Reporter Ji-young Kim jikim@sedaily.com

< 저작권자 ⓒ 서울경제, 무단 전재 및 재배포 금지 >