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Update: No-interest loans provided by Japan to people hit by pandemic expanded.

By on February 4, 2021

In extending the state of emergency in 10 prefectures (including Tokyo), Prime Minister Suga on Feb 2, has introduced an additional emergency loan of up to 2 million yen per household.

The special loans initially introduced in 2020 to support people in need has been expanded as announced by the Prime Minister. 

Under the special loan system intended to cover the living expenses of people affected by the pandemic, there are 2 types of loan available: a no-interest-bearing emergency loan (¥150,000〜¥200,000 depending on the number of family members) and an additional support loan. 

Those eligible for emergency loan are people whose means of livelihood has been affected by the new coronavirus through a decrease in income due to a leave of absence, etc., and need a loan to maintain their livelihood urgently and temporarily. The maximum loan amount  for this purpose is 200,000 yen.

The details have been updated at the Ministry of Health, Labor and Welfare website.

The additional support loan is available to households affected by the new coronavirus who are having difficulty in maintaining their daily lives due to poor income and unemployment. The maximum loan amount for this purpose is 200,000 yen per month for households with two or more people and 150,000 yen or less per month for single-person households. Households with two or more people can borrow 200,000 yen a month for nine months. In April 2020, the ceiling for this type of loan used to be ¥600,000 (¥200,000 monthly for 3 months).

It is possible to use both emergency and additional support fund at the same time for a  total of up to 2 million yen without interest.

The Ministry of Health, Labor and Welfare has emphasized that repayment of loans by low-income households exempted from payment of residence tax, may be waived. This is a major revision compared to the initial policy announced in April 2020.

For English, please click the link below.

https://corona-support.mhlw.go.jp/seikatsufukushi/en/index.html

 

 

 

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