Conditions for Rental Loan for Young People Working in Small and Medium Businesses
<Terms of Lease Fund for Young People Working in Small and Medium Enterprises>
The government provides young people with a lease loan system and products for employed young people.If you use the loan product, you can use it with a lease loan at a very low interest rate.However, good systems provided by the government are not available to all young people because conditions and qualifications are difficult.Below, we will learn more about the conditions, qualifications, and support for using the product.
In the reference materials, we introduce good information related to lease loans, so it can be helpful to refer to them.
Contents (Content)
Outline of Employed Young People in Small and Medium Businesses Monthly Deposit Loans
loan target
Time and duration of loan application
Loan Interest Rate & Limit
Repayment method and warranty-related
procedures and submissions
extension of time
additional loan
reverse tenant support
conclusion
reference material
Outline of Employed Young People in Small and Medium Businesses Monthly Deposit Loans
<Overview of Jeonse deposit loans for small and medium-sized enterprises employed youth>
Among the private products of the Housing and Urban Fund, it is a monthly deposit loan to support young people employed by small and medium-sized companies, and it is a youth product that can be used for up to 10 years within the maximum loan limit of 100 million won.The loan is 1.2%p per year, which is a very inexpensive.We will find out more about the product below.
loan target
<Confirmation of Youth Tax Fund Loans>
��Housing subject to loan
1) Rental-only area Housing with a rental-only area of 85�� or less (residential officetels include 85�� or less)
2) Rental Deposit
�� Subject to loan: Person who meets all of these requirements
(If you are confused about whether you are satisfied or not, you can check whether you are eligible for a loan through the website – link)
1) (Contract) A person who has entered into a housing lease contract and has paid 5% or more of the lease deposit.
2) (Household owner) A householder under the age of 34 who is an adult as of the date of receipt of the loan (including minors who turn 19 on January 1 of the year) and a householder who is scheduled to serve in the military.
3) All household members, including (householdless) householders, are homeless.
4) (No overlapping loans) Non-users of Housing & Urban Fund Loans, Bank-funded Jeonse Loans and Mortgage Loans
– (Housing and Urban Fund Loan) All adult household members (including spouses and children separated by households, spouses to be married, spouses to be married, and spouses to live together) cannot be loaned if they are using the fund loan.
– (Lease Loan and Mortgage Loan) If the borrower and spouse (including a prospective marriage or separated spouse) are using the lease loan and mortgage loan, they cannot borrow.
– If a borrower who is using the Korea Housing Finance Corporation (including the balance) loan treated as collateral for the Korea Housing Finance Corporation’s housing guarantee intends to use the funds or bank lease loan as collateral for the Korea Housing Finance Corporation’s housing guarantee.
5) (income) not more than 50 million won (35 million won for single-income households or single-family owners)
6) A person whose combined net asset value of the loan applicant and spouse is below the average household value (rounded from 100,000 won) in the “assets and liabilities by income quintile” of the recent Household Finance and Welfare Survey released by the National Statistical Office.
– 3.2.5 billion won or less as of 2022
– For more information, refer to the Fund Portal [Customer Services] – [Information on Asset Review and Interest Rate] – [Information on Asset Review]
7) Non-loanable for those who meet all of the following requirements
– Delinquency, subrogation/payment, bankruptcy, information on related persons
– Financial Order Disorder Information, Public Record Information, Special Record Information
– Information on registration of credit recovery support and other cases where loans are restricted by the internal regulations of the loan handling agency for couples, loans are not possible.
8) (Public Rental Housing) In the case of moving into a public rental housing as of the date of receipt of the loan, if the property for which the loan is to be applied is the object, or if the loan applicant and his/her spouse leave, the loan is available.
9) (Small and Medium Enterprises) In any of the following cases:
�� Employees of small and medium-sized enterprises as of the date of receipt of loans for employees of small and medium-sized enterprises (excluding loans if their companies fall under large corporations, speculative industries, public enterprises, etc.)
û�� Those who are supported by the Youth Startup Small and Medium Business Promotion Foundation’s “Youth Startup Fund”, the Technology Guarantee Fund’s “Youth Startup Enterprise Priority Program”, the Credit Guarantee Fund’s “Promising Startup Enterprise Growth Support Program”, and “Innovation Start-Up Growth Support Program”.
Time and duration of loan application
�� Time to apply for a loan
– Application within 3 months from the earliest of the date of balance payment under the lease contract and the date of transfer to the resident registration copy.
– In the case of contract renewal, application within 3 months from the date of contract renewal (in the case of conversion from monthly rent to lease)
�� Loan period: 2 years (up to 10 years)
– Housing & Urban Guarantee Corporation Lease Safe Loan Guarantee: Up to 2 years and 1 month (up to 10 years and 5 months with 4 years and 5 months)
-Up to 10 years of use, 2 years added per minor child (up to 20 years of use)
Loan Interest Rate & Limit
�� Loan interest rate: 1.2% per year
1The basic interest rate (variable interest rate) for lease loans will be applied if the loan conditions are not met at the first extension or if the company voluntarily retires due to the closure of the company during the second extension, the interest rate will be maintained at 1.2%.
�ڻ�Additional interest rates will be imposed for those who are not eligible for the asset review.
�� Prepayment fee: None.
��Customer-paid cost: 50% stamp duty, guarantee fee for handling guarantee certificate as collateral
�� Loan limit
<Loan Limit>
repayment method and warranty-related
�� How to repay
– Repayment at maturity: Payment of interest on monthly loans and repayment of principal upon expiration of the contract period.
�� Acquisition of collateral: It is necessary to subscribe to lease loan guarantee insurance to protect loans (Select 1 of the following insurances).
procedures and submissions
<<Youth Tax Loan Application Homepage>
�� How to apply for a loan: Online application (Fund Eden website) or bank visit application
�� Handling bank: In principle, it is handled at a branch in the province where the rental housing is located.
<Youth Tax Loan Bank>
��Procedures
<Procedures for applying for Youth Tax Loan>
�� Necessary documents: ID card, resident registration copy (if necessary – abstract, family relationship certificate, wedding invitation, etc.), fixed date lease (lease) contract copy, lease building registration certificate, SME re-employment certificate, guarantee qualification confirmation document, collateral document
– Certificate of employment
Certificate of employment with a business registration certificate if necessary
business license
If the above information is impossible, a similar form of contract, such as a career certificate, a certificate of appointment, an employment contract, etc.
– Certificate of Income
Select one of the certificates of income issued by the tax office (HomeTex), income verification certificate for ISA membership, withholding receipt for year-end settlement (including source collection, etc.), and salary details.
(Business Income) Certificate of income issued by the tax office (Hometex) or income confirmation certificate for joining the ISA, business income withholding receipt (for year-end settlement), tax base confirmation report and payment statement for the previous year.
(Pension Income) Certificate of a payment agency that can confirm receipt of other pensions, such as a pension beneficiary certificate (if the amount of pension receipt is not indicated, the pension receipt bankbook)
(Other income) Tax office (Hometex) Certificate of amount of income issued (No income) Certificate of fact without report
extension of time
�� Subject to loan: Meet the following requirements
– (Contract) A person who enters into a housing lease contract and resides in the relevant housing.
– (household owner) householder who is an adult under civil law as of the date of receipt of the loan
– A person who is homeless for all household members, including (householdless) householders
�� Loan interest rate: 1.2%p per year
��However, if you extend it once, you will be identified as not meeting the original loan conditions, or if you extend it twice due to the end of the loan period, you will be able to apply the basic interest rate (variable interest rate).
�� Precautions
additional loan
�� Subject to loan
– If more than one year has elapsed since the date of receipt of the previous loan.
(In the case of applying for an additional loan for a public rental housing, the residence continues for three months (as of the moving-in date) and more than three months have elapsed from the date of the previous loan)
– In the case where the lease deposit is increased (including the case of transferring to a new lease object)
�� Loan limit: The smallest loan among the following (~100 million won maximum)
– Limited to 100 million won per unit
– 100% of the deposit after an increase within the loan-to-loan ratio for the required funds
(80% for Korea Housing Finance Corporation’s general lease guarantee)
– Loan Limit by Mortgage Korea Housing Finance Corporation Jeonse Loan Guarantee: Housing & Urban Guarantee Corporation Jeonse Safe Loan Guarantee: No additional loans allowed
reverse tenant support
�� Subject to support: A borrower who has completed the lease registration because he/she has not received a lease deposit after the expiration of the lease contract due to reasons such as reverse lease among financial institutions or fund lease loans.
�� Bank of handling: Same.However, only Woori Bank handles new loans.
��How to support:
– Returning the deposit after two months of extension of the existing loan extension, confirming whether the guarantee can be extended every six months if the Korea Housing Finance Corporation’s guarantee is acquired as collateral.
– Application for a new loan With the guarantee of the Housing & Urban Guarantee Corporation as collateral, the application for a lease loan must meet the requirements and timing of the application.
conclusion
If you make good use of lease loan conditions such as youth lease loan, you can use loans at low interest rates for about 10 years.If the loan product does not meet the conditions, please do not give up.There are various lease support policy loans in addition to youth loans.As each of the conditions and qualifications are different, it is better to check the policies that corresponds to you.
We are introducing these materials for your reference.Please get good information about lease loans.