June 18, 2018, 03:48:01 PM

Author Topic: Jeonse Loans.  (Read 236 times)

Offline Teachersa

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Jeonse Loans.
« on: June 12, 2018, 05:57:21 PM »
Found an old thread from 2014. But was wondering if anyone has taken out a Jeonse loan recently. How exactly does it work? If you're just paying interest on the loan does the bank take it back at the end of the loan period?
I'm really curious to how it all works. It sounds like a great idea... but what are the pitfalls?

Online Lazio

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Re: Jeonse Loans.
« Reply #1 on: June 12, 2018, 09:06:59 PM »
Well, my experience is not exactly recent, as it was over 7 years ago when we got our jeonse loan.
Ours was a government supported special loan for newlyweds. It was for 8 years in total. For the first 2 years there was only interest payment monthly. After the first 2 years we had the option to pay back 20% of the loan, or else our interest rate would go up by 0,2 percentage points. Another 2 years later yet another 20% or higher interest... We ended up having this loan for only 2 years and just paid the interest during that period. After 2 years we bought an apartment so no longer needed the jeonse loan.
You can "bring" these loans with you even if you move to another apartment. Check all major banks. One would think that since ours was a government loan, the conditions would be the same no matter which bank you go to. However, it wasn't the case. I'm talking about the maximum amount we could borrow. Shinhan calculated a figure that wasn't enough for us. Went to Woori and they said we could borrow twice as much what Shinhan told us. So shop around.

Online Foreverparadise

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Re: Jeonse Loans.
« Reply #2 on: June 12, 2018, 09:46:06 PM »
You have to be a Korean citizen to get a Jeonse loan. But I don't know if an F-1 or F-2 status visa
will allow that in your name.

Offline Teachersa

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Re: Jeonse Loans.
« Reply #3 on: June 13, 2018, 08:55:20 AM »
I'm thinking F2 or F6 can apply for loans not F1 as they're usually dependents and aren't allowed to work in Korea.

Thanks for the info Lazio know I don't qualify for a newly wed loan but will call around to see what the banks offer.

One more question: What would a Jeonse loan be called in Korean?