Friday, September 28, 2007

Bank to set up unsecured divorce-settlement loans

GIFU, Ogaki -- The Ogaki Kyoritsu Bank will from Monday begin providing unsecured loans to cover the costs incurred in divorce settlements, bank officials said.

It is reportedly the first time that a bank has designed a loan especially for divorces. The bank reportedly came up with the idea after receiving feedback from its customers.

The bank will provide loans of between 100,000 yen and 5 million yen to cover compensation payments, distribution of property and legal fees.

Officials said that in fiscal 2006, there were about 20,000 divorces across three prefectures in the Tokai region.

A legal office familiar with divorce cases said that it was normal for legal fees in divorces to reach several hundred thousand yen, and for compensation to average about 4 million yen. However, since there were no loans designed especially for divorce settlements until now, people without money had no option but to use card loans and other loans with high interest rates.

The bank's divorce loans will be open to customers aged between 20 and 65 who had an income during the previous fiscal year of 2 million yen or more. The maximum loan period will be seven years. It will be a floating-rate loan with 3.45 percent added to the short-term prime lending rate. As of Tuesday, the rate stood at 5.825 percent. (Mainichi)




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1 comment:

Mishi said...

Thats interesting. Loans seem to be evolving to meet situational necessities. For others though, its more of what the financial situation dictates than of preference. Its hard to get unsecured loans with bad credit, but there are a few companies that provide such service.