Expanded Jeonse Loan Support for Young Adults and Newlyweds
The government has implemented an expanded jeonse loan support program aimed at young adults and newlywed couples.
The policy focuses on enhancing housing stability and reducing rental deposit burdens, offering tangible financial assistance especially for low-income and newlywed households.
Below, we provide a comprehensive guide on the policy background, loan eligibility, application procedures, expected effects, and frequently asked questions.
Table of Contents
- Policy Background and Rationale
- Eligibility and Loan Conditions
- Application Procedures
- Expected Benefits
- FAQ
- References
Policy Background and Rationale
- Announcement Date: July 15, 2024
- Announcing Agencies: Ministry of Land, Infrastructure and Transport (MOLIT), Housing & Urban Guarantee Corporation (HUG), cooperating commercial banks
- Main Objectives:
- Ensure housing stability for young adults and newlyweds
- Reduce financial burden of high jeonse deposits
- Improve housing mobility and social participation for young generations
Recent surveys indicate that young adults and newlyweds spend over 40% of their monthly income on jeonse deposits, highlighting severe financial strain. The government responded by expanding loan limits and offering lower interest rates to alleviate this burden.
Eligibility and Loan Conditions
| Category | Details |
|---|---|
| Eligibility | Young adults aged 19–39, newlyweds within 7 years of marriage, and first-time home renters |
| Loan Limit | Up to KRW 200 million for young adults, KRW 300 million for newlyweds |
| Interest Rate | Low rates of 2–3% per year |
| Repayment Method | 1–5 years grace period followed by equal principal and interest installments |
| Guarantee | HUG guarantees to facilitate loan approval |
Compared to previous programs, loan limits have been increased by 20–30%, and low-interest rates significantly reduce initial rental deposit costs.
Application Procedures
- Online Application: Submit through HUG website or mobile app
- Offline Application: Visit cooperating bank branches for consultation and document submission
- Required Documents: ID, marriage certificate (for newlyweds), income proof, lease contract
- Review Process: Income and credit evaluation followed by guarantee approval, then loan amount confirmation
Expected Benefits
- Housing Stability: Reduced financial burden for rental deposits improves residential security
- Lower Financial Strain: Low-interest loans ease initial living costs
- Social Participation: Reduced housing pressures enable better employment, marriage, and family planning decisions
- Market Stabilization: Expanded support contributes to more stable jeonse market conditions
FAQ
Q1. Who is eligible to apply?
Young adults aged 19–39 and newlyweds within 7 years of marriage, who are first-time home renters.
Q2. What is the loan limit?
Up to KRW 200 million for young adults and KRW 300 million for newlyweds.
Q3. What are the interest rates?
Low-interest loans at 2–3% per year are provided.
Q4. How long does it take for approval?
Review takes 1–2 weeks after submission, with loan disbursement following guarantee approval.
References
- Ministry of Land, Infrastructure and Transport Policy Info
- HUG Jeonse Loan Guide
- Korea Housing Finance Corporation