Who Can Benefit from the Support Program for Individuals with Hopeless Loans

The Ministry of Labor and Social Affairs has provided details in a Q&A format regarding the support program for individuals with hopeless loans.

The Q&A is presented in full below.

Q: I have a loan classified as hopeless, and I am currently unemployed. Can I benefit from the government support program?

A: No, you cannot benefit from the support program, as the main purpose of the initiative is to guide citizens towards employment. Therefore, it is mandatory to have a job to qualify for the program.

Q: I have several loans, each with a principal amount less than one million, but their total exceeds one million. Can I receive support for just one loan?

A: No, the program is available only for those whose cumulative principal amounts of all loans are less than 1 million drams at the time of application, and these loans must have been classified as hopeless for at least three years.

Q: I am currently unemployed but will start working in the upcoming month. Can I benefit from the support program in that case?

A: Yes, you can apply for the support program once you start working. Additionally, you can also use this platform to find a job.

Q: I have three loans with a total principal amount of 1 million 100 thousand drams. If I pay 150 thousand drams, can I apply for the program?

A: Yes, you would be considered a program beneficiary since, in this case, the cumulative principal amount of all your loans would be less than 1 million drams.

Q: I am a serviceman; can I apply and benefit from the program?

A: For individuals working in military or law enforcement agencies, additional solutions need to be developed, which will be provided in the upcoming reforms of the program.

Q: If the loan is from an unlicensed organization, can I be considered a program beneficiary?

A: No, only individuals with loan obligations in banks and credit organizations licensed by the Central Bank can benefit from the program.

Q: If I become a program beneficiary, how much support will I receive from the government?

A: The government support provided within the program will be equivalent to the income tax calculated based on the loan from your salary, and it will be directed towards repaying your hopeless loan obligation. This support will be granted for a maximum period of 24 months, starting from the first of the month following your recognition as a beneficiary.

In case of recognition as a beneficiary, the amount to be withheld from your salary for loan servicing is proposed to be set at 20% for 24 months (instead of the currently established maximum of 50%).

Q: How can I apply for the program?

A: Applications are accepted through this platform. You need to log into the platform and fill in the required information in the "Difficult Life Situation" window under the "Hopeless Loan Initiative" section.