Amid prolonged high interest rates and an economic slowdown, financial access is narrowing for low- and mid-credit borrowers, and 'policy-based inclusive finance products' operated by the government and the financial sector are drawing attention as a relief option for cash-strapped ordinary households. Below is a detailed look at the types and eligibility requirements of representative government-backed loan products designed for those who struggle to qualify for bank loans due to low credit scores or low income.

■ Miso Finance — From Startup and Operating Funds to Emergency Living Expenses

Miso Finance is a representative policy finance product that supports low-income, low-credit individuals with startup, operations, and emergency living funds without requiring collateral or guarantees. It targets those in the lower credit score bracket, as well as basic livelihood security recipients, near-poverty households, and those eligible for the earned income tax credit. By purpose, it provides startup funds and operating and facility improvement funds, with additional emergency living funds available for existing Miso Finance borrowers with a faithful repayment record.

■ Haetsal Loan — Subdivided into Worker, Self-Employed, and Youth Categories

The Haetsal Loan, synonymous with inclusive finance in Korea, is subdivided by borrower type into worker, self-employed, and youth versions. The 'Worker Haetsal Loan' provides funds to low-income, low-credit workers who have been employed for a certain period. The 'Self-Employed Haetsal Loan' supports business owners and those in agriculture, forestry, and fisheries with business operating and startup funds. 'Haetsal Loan Youth,' designed for job seekers and small and medium enterprise employees, offers a relatively low fixed interest rate and a long repayment period.

■ Saehuimang Holssi — Separate Screening Standards at Commercial Banks

Saehuimang Holssi is a product handled by commercial banks that apply separate screening standards for low-income, low-credit individuals. It targets those below a certain income level, or those with low credit scores who meet the income criteria. Loans are extended within set limits, and basic livelihood security recipients, single-parent, multi-child, and multicultural families, and those supporting parents may receive preferential interest rates. Borrowers who repay faithfully for a certain period may also qualify for additional loans.

■ Inclusive Finance Products for Lowest-Credit Borrowers

Inclusive finance products are also systematically in place for lowest-credit borrowers, who are vulnerable to being pushed toward high-interest private moneylending or illegal private lending. The 'Haetsal Loan' supports low-credit individuals below a certain income level and features a structure in which the interest rate is reduced each year with faithful repayment. Lowest-credit borrowers who cannot even use the Haetsal Loan due to delinquency records may use the 'Special Guarantee for Lowest-Credit Borrowers,' and can receive support through additional loans after faithfully using the initial loan for a certain period.

■ Support Details at a Glance by Product

• Miso Finance: For those with low credit scores or near-poverty or below, supporting funds needed for startups, operations, and facility improvements
• Worker Haetsal Loan: For low-income, low-credit workers
• Haetsal Loan Youth: For youth, job seekers, and others
• Saehuimang Holssi: Available to low-income, low-credit workers and the self-employed
• Haetsal Loan: For low-credit individuals who have difficulty using mainstream financial services
• Special Guarantee for Lowest-Credit Borrowers: For those whose credit is so low that they struggle to use existing policy-based inclusive finance products

[This article was written with AI assistance. The eligible recipients, interest rates, limits, guarantee conditions, handling institutions, and application criteria for policy-based inclusive finance products may change according to government policy and the operating guidelines of financial institutions. Before applying, be sure to check the latest information through official guidance from the Korea Inclusive Finance Agency and the relevant financial institution. Requests for advance payments of fees or guarantee charges, or for personal and financial information, from anyone impersonating a government agency or financial company may indicate financial fraud, so extra caution is required.]