Life insurance loan system Rapid increase in use with new corona 13:52 on May 24
The use of a system called “contractor lending”, which borrows money from insurance companies using the life insurance fund as collateral, is rapidly increasing due to the new coronavirus. Many small and medium-sized enterprises are faced with tight cash flow, and life insurance companies specially encourage zero-interest utilization.
"Contractor loan" is a system in which companies and individuals who have life insurance that collects insurance premiums can borrow money from insurance companies with the insurance premiums already paid as collateral.
Borrowing typically pays a few percent per year, but many life insurance companies have zero interest since March to help policyholders affected by the spread of the new coronavirus.
From March to the beginning of this month, the number of companies using Nippon Life and Dai-ichi Life has increased approximately 3.5 times compared to the previous year.
In addition, Meiji Yasuda Life also increased about three times, and the use of SMEs that face severe cash flow due to the spread of infection is conspicuous.
Each company had set a deadline for the use of zero interest by the end of this month, but since it is expected that the severe business environment will continue in the future, we will extend it and encourage companies and individuals to use it.