Follow-on assistance to those in financial distress

February 4 , 2021

The Ministry of Health, Labor and Welfare announced on February 2 that it would be raising the ceiling on loans provided to those who have lost their jobs due to the pandemic and are facing extended financial difficulty as a result. The special loan, which is available for a predetermined period of time and used only to cover living expenses, will rise by ¥600,000 per eligible household. The ministry’s decision followed a Komeito proposal to aid the needy and growing demand for additional loans by borrowers.

Under the existing program, a household with more than two or more individuals was able to receive up to a ¥1.2 million loan and an additional ¥200,000 from an emergency petty cash fund. While a number of conditions must be met, the ministry has decided that those who borrowed from the petty cash fund will not have to begin paying back their loan for at least a full year.