Hana Bank Jeonse Loan Product Introduction

Hello everyone! Today, we're going to dive deep into the Hana Bank Jeonse Loan. This could be very useful information for those who need funds for their jeonse (lump-sum deposit for a rental home). Hana Bank's jeonse loan product allows you to borrow at a fixed interest rate, secured by a guarantee certificate from the Korea Housing Finance Corporation. Shall we take a detailed look at the application eligibility and interest rates?

Eligibility and Requirements

To apply for a Hana Bank Jeonse Loan, you must meet all of the following conditions.

• You must be a resident citizen who has signed a housing lease agreement.
• The lease deposit must not exceed 700 million KRW in the Seoul metropolitan area and 500 million KRW in other regions.
• You must be 19 years of age or older and the head of household, having paid at least 5% of the lease deposit.
• You must be a house-less tenant, and a household member who forms the same household as the head of household must meet one of the following conditions:
  • Spouse
  • Direct lineal ascendants and descendants, and their spouses
  • Siblings of the applicant and their spouse
  • Direct lineal ascendants and descendants of the spouse, and their spouses
  • Individuals scheduled to marry within 3 months of the guarantee application date

Loan Limit and Period

The maximum loan limit is 400 million KRW, and the lesser of the following conditions will apply.

• Within 90% of the lease (jeonse) deposit
• Within a maximum of 5.0 times the applicant's (including spouse) annual income
• Within the guarantee limit based on repayment ability set by the Korea Housing Finance Corporation

The loan period is 2 years, and the lease contract expiration date must match the loan maturity date. The repayment method is a lump-sum repayment at maturity, and the collateral is secured 100% by the Korea Housing Finance Corporation's guarantee certificate.

Loan-Related Costs and Precautions

Loan-related costs include stamp duty, which is shared equally (50% each) by the bank and the customer. Additionally, the guarantee fee is borne by the customer and ranges from 0.02% to 0.1% of the loan amount.

Please note the following when applying for the loan:

• Loan limits and interest rates will vary depending on your creditworthiness.
• Violations of the Korea Housing Finance Corporation's guarantee business guidelines may result in disadvantages.
• Guarantee issuance may be denied based on your creditworthiness.
• In case of principal and interest delinquency, you may be obligated to repay all principal and interest.

Income Tax Deduction Benefits

If you are a wage earner who is the head of a house-less household and have moved into or resided in a housing unit of national housing size for less than 3 months, you can receive an income tax deduction of 40% of the principal and interest repayment amount of the lease loan, which has been deposited into the landlord's account. However, please be aware that income deduction criteria and amounts may vary depending on your individual circumstances.

For more detailed information about the Hana Bank Jeonse Loan product, it is recommended to check with the Hana Bank Customer Center (1599-2222), visit a branch, or explore the jeonse loan category on the Hana Bank website. We hope this information has been helpful to you!