Japaneseopen new window
(Provisional translation)
May 27, 2020
Financial Services Agency
(Japanese version: published May 1, 2020)

Effectively Interest-free and Unsecured Loans by Private Financial Institutions
※Application has been closed.


Private financial institutions will provide effectively interest-free and unsecured loans with the deferment of principal payments up to five years and the reduction or exemption of guarantee fees

On April 7, the government decided on the Emergency Economic Measures to cope with COVID-19 (an alteration to which was then decided on at the Cabinet meeting on April 20). Under the FY2020 supplementary budget, the government introduced effectively interest-free and unsecured loans provided via private financial institutions, utilizing local governments’ loan programs for the purpose of helping SMEs continue their businesses.

* Depending on the local governments’ loan programs, interest will be reimbursed to borrowers afterwards.

Following the approval of the supplementary budget on April 30, local governments will commence the new loan program from May 1.

Provision of loans under the new loan programs will be facilitated through efficient and swift one-stop loan application procedures by financial institutions. For details of the new loan program, consult financial institutions nearby.

  • Businesses that satisfy the following criteria concerning drop in sales and have obtained approval for Safety-net Guarantee No.4 or No.5* or Crisis-related Guarantee.
  Sales: -5% Sales: -15%
Small business owners (including freelancers) Guarantee fees and interest: Zero
Small and medium-sized enterprises (excluding the above) Guarantee fees: 1/2 Guarantee fees and interest: Zero
* Regarding Safety-net Guarantee No.5, businesses of any categories are eligible as of May 1.

[Other conditions]
  • Period of deferment, etc.: Up to five years; Unsecured (Business owners' personal guarantee is not required, in principle.)
  • Upper limit for loans: 30 million yen
  • Support period: Guarantee fees: Entirety of the loan period; Interest subsidy: For the initial three years

PDFAttachment 1: Outline of Private Financial Institutions' Effectively interest-free and Unsecured Loan Programsopen new window (available in Japanese)
PDFAttachment 2: One-stop Procedures by Financial Institutionsopen new window (available in Japanese)

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