The outline of those eligible for the government’s credit amnesty for small business owners has been revealed. Starting from Monday, March 12, 2024, those eligible for credit amnesty for small business owners will benefit.
We will provide you with detailed information on how to check and inquire who is eligible for credit pardon, which you are most curious about. Please be sure to repay the entire overdue loan by the end of May to receive credit recovery benefits.
Small business owners eligible for credit amnesty
Credit amnesty for small business owners/common people who have delinquent loans of 20 million won or less can be summarized as follows.
✅ From September 1, 21 to January 31, 24, loan delinquency occurred for 2.98 million people.
✅ Among them, 2.59 million people have completed full repayment of overdue loans and have the opportunity to recover their credit.
✅ 390,000 people (298-259) will benefit from credit forgiveness if they repay their overdue loans in full by the end of May.
If you are curious about whether ① you are one of the 2.59 million people who have already completed full repayment, or ② whether you may be eligible, you can inquire at a personal credit rating agency.
Representative inquiries can be made through NICE and KCB, so please check to see if they are included.
Check NICE credit pardon
Check KCB credit pardon
Toss credit pardon inquiry
If you are eligible, you can naturally increase your credit score without a separate application and benefit from the credit forgiveness described below.
What are the standards for loan delinquency?
Many people are curious about the target amount standard. The most accurate way to inquire is through NICE or KCB above.
The contents below are official documents from the Financial Services Commission. If you look closely, financial companies (banks) register the loan principal for long-term delinquency (more than 90 days).
Those eligible for credit amnesty
In other words, the bank can repay the full amount of the overdue loan registered with the Korea Credit Information Service or a credit rating agency.
What are the benefits of credit forgiveness?
If you repay the entire overdue loan, your credit score will increase from Monday, March 12, 2024. It is done when your credit score increases by an average of 30 to 40 points, and has the following advantages.
✅ Apply for a new loan at a lower interest rate
✅ Possibility to change existing loans to ones with better terms
✅ Credit card disadvantages are eliminated and new issuance becomes smoother.
In addition to the credit forgiveness benefits explained above, there is one more good news.
This means that delinquent record information will be shortened for small business owners and ordinary people undergoing debt adjustment. We will provide detailed information below.
Low-interest refinance loan for small business owners
Benefits for faithful patients of small business owners
As of March 24, benefits will be further improved for small business owners and ordinary people who are undergoing debt restructuring (New Start Fund, Credit Recovery Committee debt restructuring).
Previously, public information (debt adjustment in progress) was released to the Korea Credit Information Service only after faithful repayment for two years. From now on, if you repay faithfully within one year, your public information record will be released.
If public information is recorded in the Korea Credit Information Service, it can be seen as a great benefit because financial transactions (loans, credit card use, etc.) are not carried out.
Please note that the New Start Fund recipients have been expanded as of February 2024, and those who are experiencing difficulties can receive significant help.
New Start Fund support benefits
Information on policy funds for small business owners
If you take the opportunity to restore your credit, the range of loan utilization is very good, so be sure to check the eligibility for small business credit forgiveness and receive the benefits.