Check the retroactive application of the existing loan

Starting on the 7th, the legal maximum interest rate will be lowered from 24% to 20% per year. Existing loan users may confirm whether they are retroactively applied to savings banks, capital, credit card companies, etc., and in other cases, renewal or alternative loans may be utilized. The Financial Services Commission announced on the 6th that the highest interest rate will be cut to 20% per year under the Loan Business Act 폰테크 and the Interest Restriction Act from the 7th to ease the burden on high-interest borrowers. As a result, the highest interest rate applied to lenders and credit financial institutions and the highest interest rate applied to money transactions between people with 100,000 won or more will be lowered from 24% to 20% per year.

Basically, the maximum interest rate cut does not apply retroactively to existing loans. However, savings banks, capital, and credit card companies have decided to voluntarily apply it to existing loans by joining the purpose of lowering the highest interest rate. Therefore, if you are using the business right, you can inquire and confirm the retroactive application of interest rates of less than 20% per year to financial companies.

Even if it is not voluntarily cut, you can ask the relevant financial company if it is possible to cut interest rates by renewing the contract, etc. Where a new loan is possible through transactions with other financial companies, etc. or through the use of policy-based financial products, the existing loan exceeding 20% per year may be replaced with a new loan.

It is illegal to receive interest rates of more than 20% per year if you take out new loans or renew or extend existing loans after the 7th. In particular, what lenders and others receive from borrowers in relation to loans, such as fees and overdue interest, as well as contractual interest, is calculated as interest. Since the pan-ministerial joint crackdown on illegal private financing is in operation for four months between July and October, it is possible to actively report to the illegal private financial reporting center in case of damage.

Financial firms, lenders and illegal private financial firms that have received interest in excess of the highest interest rate can be sentenced to up to three years in prison or fined up to 30 million won. The excess of the maximum interest rate is void, and the debtor may claim a return. If you need to claim a refund for the highest interest rate violations, or if you are suffering from illegal collection but are agonizing over cost problems, the government’s “Free Support Project for Debtor Representatives and Litigation Lawyers” can be used.

If it is difficult to extend existing loans or use new loans, it is recommended to use policy-based financial products.

Safety net loans II can be used to support the repayment of low-income and low-credit borrowers who have difficulty extending existing high-interest loans. Safety Net Loan II has been using high-interest loans for more than 20% a year for more than a year or is about to expire within six months, and is subject to low-income and low-credit borrowers who are normally repaying their existing loans. The limit is 20 million won.

Also, ‘Sunshine Loan 15’ will be released on the 7th, which is 2 percentage points lower than the Sunshine Loan 17 interest rate, which is being supplied for low-income and low-credit people who are unable to use even the existing policy-based finance. Even if it is difficult to use these products, if the debt burden is heavy, the reduction can be supported through debt restructuring by the Credit Counseling and Recovery Service.

“Even if it is difficult to use funds, we should never use illegal private financing that receives excessive interest rates and leads to illegal collection,” the Financial Services Commission said. “The Korea Inclusive Finance Agency supplies various policy working-class financial products so that opportunities for ordinary people to use funds are not reduced due to the reduction of the highest interest rate.”.

In addition, the Korea Inclusive Finance Agency supports a customized counseling system to address the difficulties of low-credit people due to the cut in the highest interest rate. Consultation can be made through Seo Geum-won’s face-to-face channels and non-face channels, as well as information on policy-based financial products as well as customized loan comparison services linked to financial companies. Customers who are unable to use it will be linked to the Credit Counseling & Recovery Service’s debt restructuring and welfare services for local governments.