‘Financial Supports for Low-income Households’, you have probably been heard a lot of it. At least, if you were a regular visitor to our blog, you would read several posts about the issue.
‘Transfer Loan’ is one of the options available for low-income earners. This is for households with a low credit rating (from six to ten) whose income is less than KRW 40 million. Transfer Loan, as you can guess from the name of it, transfers an interest rate. This is to ease financial burdens of a high interest rate by lowering the interest rate. So far, 130 thousand households have been benefited.
Well, I assume that this is enough explanation for you to know that Transfer Loan is ‘the right option’ for households confronting difficulties of repaying a high interest rate. Then how much does it lower the interest rate?
Until now, the rate of interest for Transfer loan is average 11 percent (ranging from 8.5 percent to 12.5 percent). However, as you know, an overall rate of interest in market has been lowered. And some of you might wonder whether the interest rate for Transfer Loan is fixed or flexible. If the overall interest rate is under downward pressure, why not Transfer Loan?
Transfer Loan adopts a flexible interest rate, reflecting market conditions. Korea Asset Management Corporation announced that there will be further decrease in interest rate for Transfer Loan by 0.5 percent. This change is effective as of next Monday, 12th of November. The new interest rate is average 10.5 percent (ranging from 8 percent to 12 percent).
Sounds all good for those of you looking for a possible way-out from a high interest rate. How would you apply for it? I hope you remember the phone number ‘1397’, the Financial Support Call Center for Low-income Households. Call the number and check whether you are eligible for application. Or, visit the website ‘One-Stop Finance for Low-income Households (http://www.hopenet.or.kr)’.
* Related posts
– Financial Support Call Center 1397 for Low-income Household https://financialservicescommission.wordpress.com/2012/09/25/financial-support-call-center-for-low-income-households/
– One-Stop Finance for Low-income Households https://financialservicescommission.wordpress.com/2012/08/14/one-stop-finance-for-low-income-households/