Release imminent ‘Habitat Loan Card’… Will it be ‘sunshine’ for low-credit people?

The “Sunshine Loan Card” will be released at the end of this month for low-credit and vulnerable people who have difficulty in issuing credit cards.

According to the card industry on the 23rd, after the 27th, 8 full-time card companies (Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, Woori, Hana, BC) will introduce Sunshine Loan cards sequentially.

In March, the Financial Services Commission announced the ‘Policy to Reorganize the Financial Supply System for Low-income People’ as the first follow-up measure following the cut in the legal maximum interest rate (24% → 20%) that took effect in July.

With a plan to absorb the financial risks of the common people and expand the convenience of using funds due to the cut in the highest interest rate, the launch of the ‘Sunset Loan Card’ was announced following the ‘Sunshine Loan Bank’. Authorities provide support to use credit cards as long as the minimum repayment capacity is met.

The Sunshine Loan Card is a product for low-credit users who have difficulty issuing credit cards in the credit rating system. To apply, you must be in the bottom 10% of the credit rating agency’s credit score. You can apply if your score is 724 or less based on the NICE credit rating and 655 points or less based on the KCB credit rating.

In addition, when annual income is deducted from the annual principal and interest repayment of the existing loan, the annual income must be at least 6 million won, and before issuance, credit management education must be completed on the financial education portal of the Financial Services Agency. When the Guarantee is issued by the Financial Services Agency, the customer receives a card from the credit card company.

However, if you have issued a general credit card or applied for personal rehabilitation, bankruptcy, or credit recovery, you will not be eligible for Sunshine Loan card support. Even if there is a record of overdue, it is not possible to apply.

You can only apply for one card per person, and the maximum limit is 2 million won. However, the actual limit of the card that can be used is the amount after deducting 200,000 won from the guarantee amount. The installment period is up to 6 months, and it cannot be used in some industries such as entertainment and speculation. Credit card loan service is not available.

The launch of the Sunshine Loan card is positive in that it increases the opportunity for low-credit users to use funds, but some are concerned about the risk of delinquency and insolvency.

Seo Ji-yong, a business administration professor at Sangmyung University, said, “It may be positive in that it provides an opportunity to low-credit users who have suffered inconvenience due to not being able to use a credit card, but there are concerns about the delinquency rate,” said Seo Ji-yong. there,” he said. He also pointed out, “There is a possibility that the moral hazard phenomenon will intensify if the government provides financial support in case of delinquency.”