Relaxing Standards for Lease Deposit Loan Interest Support, Support for Credit Recovery
Busan city announced on the 2nd that it will relax support standards and establish special support for youth affected by lease scams for the first time nationwide in order to reduce the housing burden for young people.
To allow more young people to benefit from the ‘Youth Lease Deposit Loan Interest Support Program’ (Stay Place Loan), which provides loans for lease deposit and interest to young people aged 19 to 39 without a home, Busan city has lowered the barriers to entry by relaxing income criteria.
The income criteria have been raised from the original individual income of less than 45 million won and combined spousal income of less than 80 million won to 60 million won for individuals and up to 100 million won for couples. By relaxing the spousal income criteria, Busan city aims to resolve discrimination resulting from marriage and allow more young people without homes and young couples to stay in Busan.
For individuals with incomes of 45 million won or less, Busan city will provide a 2.5% interest support, and the interest borne by young people will be lowered to 1%, the lowest level nationwide. The standards for interest support for youth lease deposit loans will be applied to new applicants starting from October.
Recently, Busan city has established a special support for youth affected by lease scams to support economic recovery. The special support relaxes requirements for default prevention costs for youth affected by lease scams and provides additional support for individual debt restructuring costs.
The special support applies to youth who possess documents confirming that they have been affected by lease scams according to the ‘Special Act on Support for Lease Scam Victims and Housing Stability’ or who have been registered as leaseholders after a court order. Youth eligible for special support can receive repayment support for up to 1.5 million won in cases of individual debt restructuring.
[Image: Busan City Hall]