[앵커]
The Startup Fund, a 30 trillion won debt reduction program for small businesses, will be launched in October.
This is to reduce the debt of small business owners affected by COVID-19 who have difficulty repaying their loans. Borrowers whose loans are overdue for more than 3 months can receive a reduction of up to 80 to 90% of the principal after an examination.
Reporter Jeong Jae-woo on the sidewalk.
[리포트]
The Financial Services Commission announced that it will start accepting applications for debt adjustment through the Startup Fund from October.
If you are a small business affected by COVID-19 and your loan has been overdue for more than 3 months, or if you are concerned about delinquency, you can apply for debt adjustment.
All loans received from all financial institutions, including credit loans, secured loans, and household loans, are subject to adjustment.
However, loans for the purpose of asset formation such as housing purchase are not subject to adjustment.
The maximum loan amount that can be adjusted is KRW 1.5 billion.
Loans overdue for more than 3 months can reduce 60~80% of the net debt by subtracting the value of the property from the loan amount.
A maximum of 80% is exempted depending on the property owned, and a maximum of 90% is exempted for vulnerable groups such as those receiving basic livelihood benefits.
Interest and delinquent interest are also reduced.
However, if the value of the property is greater than the loan, the principal cannot be reduced.
Loans that are concerned about delinquency can extend the repayment period or adjust the interest rate without adjusting the principal.
All loans are converted into amortized loans, in which the borrower can choose the deferral period and repayment period.
Debt reconciliation applications can be made through online platforms scheduled to be opened in October or through on-site counters such as the Financial Integration Support Center for the Commonwealth.
If you apply, a debt reconciliation plan is prepared after a debt reconciliation review such as income and property investigation for about two weeks, and a debt restructuring agreement is concluded within two months.
The FSC will create and operate a separate call center next month to provide detailed guidance and consultation on the use of the New Start Fund.
This is Jung Jae-woo from KBS News.
Video Editing: Yoo Ji-young