Starting this month, foreigners residing in Korea can also receive Sae-Hope Hallssi loans, a representative low-income financial product offered by banks. Launched in 2010, Sae-Hope Hallssi loans had not been available to foreigners or citizens residing overseas.
According to the financial sector on the 14th, banks recently agreed to revise the Sae-Hope Hallssi operating regulations in this manner. Specifically, they deleted the clause that excluded overseas citizens, foreigners, and people staying abroad from eligibility for Sae-Hope Hallssi loans.
Banks said they revised the operating regulations to expand eligibility for Sae-Hope Hallssi. Banks also decided to extend the operating period for Sae-Hope Hallssi, which expired last month, by 10 years to 2035.
Sae-Hope Hallssi loans are unsecured personal loans operated with banks' own funds. Eligible borrowers are those with annual income of 50 million won or less and in the bottom 20% of credit scores, or those with annual income of 40 million won or less. The interest rate is up to 10.5% per year, and the limit is set by each bank within a maximum of 35 million won.
According to the Financial Supervisory Service, since the launch in November 2010 through the end of last year, about 2.72 million people used a total of 38.2 trillion won in Sae-Hope Hallssi loans. Last year, 3.5164 trillion won was supplied, and this year's supply target is 4.2 trillion won.