Taiwan launched a labor insurance relief loan programme aimed at helping workers experiencing financial difficulties as the year ends.
Under this programme, workers who have contributed to labor insurance for at least 15 years and have no outstanding premiums or late fees can apply for loans of up to NT$100,000 (approximately $3,200).
Applications will be accepted until January 2, according to news sources.
To qualify, applicants must not have any outstanding labor insurance relief loans. Those already receiving old-age or disability benefits, or labor insurance compensation from relevant agencies, are ineligible to apply.
The Bureau of Labor Insurance stated that the loan term is three years, with an annual interest rate of 2.165%. For the first six months, borrowers are required to pay interest only, with no principal repayments due during that period.
Starting from the seventh month, borrowers will be required to repay both principal and interest in equal monthly instalments. Eligible workers can apply for the loan online, in person, or by mail.
The Bureau of Labor Insurance has designated the Land Bank of Taiwan to administer the loan program and has advised borrowers to make timely repayments. It cautioned that overdue payments could lead to deductions from insurance payouts in the event of an insured incident, which could negatively impact their financial situation.