Expansion plans of the small-loan finance for the low-income families and the young

In spite of the continuation of global economic growth, the polarization of wealth has become more serious. Due to the Europe’s financial crisis, the real economy is expected to slow down further. Not surprisingly, the finance difficulty for the low-income families will be increased. Thus, it is necessary to reinforce finance policy like Micro-credit. There are some expansion plans of the Micro-finance for the low-income families which are suggested by Financial Services Commission (FSC).

 “Conversion loan which can transfer to lower interest rates will be released”, said the chairman of FSC, Seok-dong Kim, on Thursday May 24th. According to Bankers Association, banks are planning to lower loan interest rates for university students through social contribution fund. Also ‘Start-up assistance foundation’ will be officially launched in the coming weeks. Mr. Kim explained, “Foundation will provide strong and continuous institutional support for younger people in the nation seeking to launch their own startups.”

FSC draws up an extension plan for the traditional market traders, which is double that of last year. The funding limits per person have been revised upwards from five million won to seven million won. When the demand for money is active such as New Year’s Day and Chuseok, it is allowed to increase trade people’s credit line. Besides, the apply standards of Micro-finance have improved. It will be applied flexibly according to their willing to self-support and possibility of success.

Micro-finance Support center will be established cooperating with local government. It provides consulting services that have systematic approach in consideration of the people’s needs such as Micro-Credit, sunshine loan. In addition to consulting service, they endeavor to do customized promotion and finance education for vulnerable members of finance.

FSC is planning to enforce expansion plans on stabilization of living for the young and low-income families. Not only this, FSC is committed to further put efforts on financial policy and banking reforms. To relieve the financial difficulties of a Micro-finance, FSC will be pushing ahead with the Micro-finance expansion strategy and sectional agenda in June 2012.

Dohee Im(ddoohee@naver.com)

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One Response to Expansion plans of the small-loan finance for the low-income families and the young

  1. Erika says:

    This is an excellent summary of the IRA contribution. My wife is self employed and has a special kind of 401k called a “Individual 401K” that allows her save up to $49,000 a year on a pre-tax basis!

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