The delinquency rate of policy-based finance soared by more than 35%

사진 확대

The delinquency rate of policy-based finance soared by more than 35%, the report showed.

According to data submitted by Rep. Lee Kang-il (Democratic Party of Korea), a member of the National Assembly’s political affairs committee, on the 8th, the delinquency rate of illegal private financial prevention loans (formerly micro-living loans) jumped 24 percentage points from 11.7 percent at the end of 2023 to 35.7 percent in August this year.

It is over the mid-30% range in about two and a half years.

The illegal private financial prevention loan is a system that lends up to 1 million won to low-credit and low-income groups with an annual income of 35 million won or less and a lower credit rating of 20% or less. The initial lending rate is 15.9% per year. If you repay faithfully for a year and complete financial education, it will be lowered to a minimum of 9.4%.

The subrogation rate of ‘Sunshine Loan 15’, the lowest credit support policy product, rose from 21.3% at the end of 2023 to 25.8% in August this year. During the same period, the subrogation rate of the “Special Guarantee for Minimum Creditors” for borrowers with lower credit ratings of 10% or less also surged from 14.5% to 26.7%.

Lawmaker Lee Kang-il said, “Rather than consuming finances with high subrogation rates and delinquency rates, it is better to set an appropriate interest rate to increase the possibility of repayment.”