Low-income loan delinquency rate doubles...Financial authorities overhaul 'sunshine loans'

The delinquency rate of policy financial products for vulnerable borrowers has soared this year due to the prolonged so-called "three high" phenomenon and economic slowdown, including high interest rates, high prices and high exchange rates.

According to the data received by Lee Kang-il of the Democratic Party of Korea from the Korea Inclusive Finance Agency, Sunshine Loan Bank's subrogation rate, which supports low-income and low-credit people to cross the primary financial sector because they have relatively good repayment capabilities, was 16% at the end of last month.

It doubled from 8% at the end of last year.

At the same time, the delinquency rate of 'Sunshine Loan 15', a low-income policy financial product that supports the lowest creditors, recorded 26% at the end of last month.

In addition, the delinquency rate of micro-living loans, which lend up to 1 million won on the same day to vulnerable groups in need of rapid payment, rose to 31% last month, rising to 30% for the first time.

In response, the Financial Services Commission is preparing to reorganize policy financial products such as Sunshine Loan and micro-living loans.

It is known that the delinquency rate has risen too fast and needs to be managed, and some of the criteria for policy products should be adjusted.