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Small Emergency Loan: Everything You Need to Know! (For Low Credit and Low Income Individuals)

  • Written Language: Korean
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Created: 2024-11-17

Created: 2024-11-17 00:51

Are you struggling with a sudden shortage of living expenses? If you have a low credit score and find it difficult to get a bank loan, consider a government-supported small living expenses loan. This article provides a detailed explanation of everything about small living expenses loans.

What is a Small Living Expenses Loan?

A small living expenses loan is a government-supported financial product for low-credit and low-income individuals. People with various occupations, such as the unemployed, students, and daily laborers, can use it, and loans of up to 1 million won are available.

Why do you need a small living expenses loan?

  • Low Credit Score Individuals: Individuals with low credit ratings who have difficulty obtaining bank loans
  • Low Income Individuals: Individuals with an annual income of 35 million won or less
  • Emergency Funds: Individuals experiencing difficulties due to a sudden shortage of living expenses
  • Preventing the Use of Loan Sharks: To prevent the use of high-interest loan shark companies and to help people use legitimate financial services

Advantages of Small Living Expenses Loans

  • Fast Loan Disbursement: You can receive the loan quickly after applying.
  • Low Interest Rates: You can use it at a much lower interest rate than ordinary loan shark companies.
  • Flexible Repayment: Extension of the maturity date is possible, and there are no fees for early repayment.
  • Government Support: Since it is a government-supported product, it has high stability.

How to Apply for a Small Living Expenses Loan

Small Emergency Loan: Everything You Need to Know! (For Low Credit and Low Income Individuals)

Small Emergency Loan Conditions and Application Methods

1. Consultation with the Low-Income Financial Call Center (1397): You can receive guidance on application eligibility and procedures through a phone consultation.
2. Online Reservation: You can make an online consultation reservation through the website of the Korea Credit Guarantee Fund.
3. On-site Consultation: After making a reservation, visit the nearest Integrated Support Center for Low-Income Households to receive a consultation and sign a loan agreement.

Items to Prepare When Applying

  • Identification card
  • Copy of bank passbook in your name

FAQ

  • What is the interest rate for a small living expenses loan? The maximum is 15.9%, and you can receive interest rate reduction benefits depending on your interest payment record.
  • What is the loan period? It is basically one year, and it can be extended for up to five years.
  • What happens if I am late with my payments? Your credit rating may decrease, and it may become difficult to use additional financial services.
  • Can I receive this loan in addition to other loans? You can receive it in addition to other loans, but you should apply considering your total repayment capacity.

Conclusion

Small living expenses loans are essential financial products for low-credit and low-income individuals. However, excessive borrowing can negatively impact your credit, so you should use them cautiously. It is important to receive sufficient consultation before applying for a loan and to develop an optimal loan plan that suits your circumstances.

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