Overview

The Jeonse Loan Calculator estimates monthly interest payments, total interest costs, and loan eligibility for jeonse deposit loans. Jeonse (전세) is a unique Korean housing rental system where tenants pay a large lump-sum deposit instead of monthly rent. This calculator helps you compare loan conditions and plan your finances for securing a jeonse deposit.

Formula

Monthly interest = Loan principal × Annual rate ÷ 12
Total interest = Monthly interest × Loan term (months)

Example: Loan 200M KRW, 3.5% annual rate, 2-year term
Monthly interest = 200,000,000 × 0.035 ÷ 12 = 583,333 KRW
Total interest = 583,333 × 24 = 14,000,000 KRW

How to Use

1. 1Enter the total jeonse deposit amount.
2. 2Enter your available funds (cash on hand).
3. 3Enter the loan interest rate (annual rate).
4. 4Select the loan term.
5. 5Click calculate to see monthly interest, total interest, and effective costs.

Examples

Background

Jeonse is a uniquely Korean housing rental system where tenants pay a large lump-sum deposit to the landlord instead of monthly rent. It became widespread during the 1960s housing shortage and remains a major form of rental housing in Korea today. Jeonse loans help tenants bridge the deposit gap, typically structured as interest-only with lump-sum principal repayment at maturity. The government operates subsidized programs like the Beotimok Jeonse Loan and Youth Jeonse Loan at below-market rates. Jeonse deposit insurance through HUG and SGI protects against the risk of deposit non-return.

Tips

• ✔Jeonse loans are typically interest-only with a lump-sum principal repayment at maturity.
• ✔Check government-subsidized jeonse loan programs first, as they offer 1-2%p lower rates than commercial loans.
• ✔Enroll in jeonse deposit insurance (HUG, SGI) to protect against deposit non-return risk.
• ✔Loan limits are generally 70-80% of the jeonse deposit, varying by income and credit score.
• ✔Choose between fixed and variable interest rates, considering the risk of rate fluctuations.

FAQ