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Loan Service In Support of Lifestyles

The service is a system for providing loans to members in temporary need of money for an emergency or other needs.

Those Members Who Can Take Out Loans

• Loans are available to the teachers with member eligibility who are currently working at schools. Teachers who have lost their member eligibility cannot apply for the loans even if they are working at schools. Loans are neither available to the voluntary continued members nor the specified teachers.
• Only the members who are to receive the long-term benefits can apply for the housing loan.
• If a member loses his/her eligibility during the repayment period of the loan (including when the member becomes a voluntary continued member), he/she must repay the loan in a lump sum in full.
• Even when a member changes the member type to Specified Teachers during his/her repayment period of the loan, he/she, as a rule, must repay the loan in a lump sum in full. However, if the member applies for the continuation of repayment through school, he/she can continue with the repayment of a fixed amount on a regular basis.
• Loan application and repayment are shown below by the member type.

Member Type and Loan Application/Lump Sum Repayment

Classification	Member type	Loan application		Repayment of current loan
		Non-housing loan	Housing loan
Type A school	Type A-1 member			Regular repayment
	Type A-2 member			Regular repayment
	Type B-2 member		×	Regular repayment
	Type B-3 specified teacher, etc.	×	×	Application for continuation available
	Type C-4 member, Type C-5 member			Regular repayment
	Type C-6 specified teacher, etc.	×	×	Application for continuation available
Type B school	Type B-1 member		×	Regular repayment
Type C school	Type C-1 member			Regular repayment
	Type C-2 member			Regular repayment
	Type C-3 specified teacher, etc.	×	×	Application for continuation available
Voluntary continued member		×	×	Lump sum repayment

Can make use of any type of loan
Can make use of any type of loan except a home loan

Types of Loans Available

General loan, education loan, marriage loan, disaster loan, medical treatment loan, home loan

Lending Rates

Although the annual lending rate for the general, education, marriage, medical, and home loans is 4.26% and for the disaster loan 3.40%, so long as the “rate of deposit” is 4.00% or less, a “special rate” will be applied as follows.

Note 1:The Special Rate varies with the rate (Rate on Deposits) determined by the Finance Minister in accordance with Clause 3, Article 7 of the Fiscal Loan Law.
Note 2:The current rate as of October 1, 2011 is 2.26% (disaster loan: 2.00%).

Loan Application

• The loan application must be conducted through schools (A proof from the school is required.).
• Following are the loan application deadlines and remittance dates:
  Loan applications received by the 15th of each month are processed and money is remitted to the bank account of the school or other member institution by the 2nd of the following month. However, in the case of applications received between the 16th and the last day of each month, if a request is made, remittance can be made by the 22nd of the following month (loan will be treated as having been made on the 2nd of that month).
  
  Note: When the deadline for application (15th and the last day of each month) falls on a Saturday, Sunday or a holiday, the business day directly before that day will be the deadline. If the day of remittance should fall on a Saturday, Sunday or a holiday, the money will be remitted on the business day directly after that day.
• If you apply for more than one loan, the amount of monthly repayment of each loan cannot exceed 30% of your Monthly Standard Salary (in the case a home loan, each semiannual repayment amount cannot exceed 60% of your standard earnings).

Loan Repayment

• Schools deduct the fixed repayment amount (equal monthly payment with interest) from the income. In the case of a home loan, a program combining monthly and semiannual (January, July) payments is also available, but you cannot change the combined payment schedule midway through the payment plan.
  Please note that you can voluntarily repay the loan in a lump sum or partially midway through the repayment plan.
• The application for the voluntary repayment program is due no later than the 15th of each month. If the 15th falls on a Saturday, Sunday, or holiday, the due date will be moved forward to the day before or two days before the 15th.
• If a member loses his or her member eligibility, he or she must repay the outstanding principal and interest in a lump sum in full. This amount will be deducted by the school from his or her retirement allowance. Note that if the member obtains the eligibility to continue his or her membership by becoming employed at another private school without any break between the two employments, he or she is able to continue the regular repayment as long as the necessary procedures are taken through the new school.
• Even if the member eligibility is not lost, if a member violates the loan rules, he or she must repay the outstanding balance in a lump sum in full.
• When the retirement allowance is awarded to a member with a home loan, even if the member eligibility is not lost, he or she must apply the allowance toward the repayment of the outstanding principal and interest of the home loan.
• Regular repayment, voluntary repayment, and lump sum repayment are all made through school.
• Loans are not available to Voluntarily Continued Insurance members.
• The loans that are decided to be provided cannot be cancelled. Be careful to apply for a loan.

General, Education, Marriage, Disaster, and Medical Loan Program

Home Loan

Home Loan

• Application to be made within 6 months from the date of signing a contract or receiving a construction estimate.
  
  Please note that even if the application was filed beyond 6 months after the contract date or the construction contract estimate date, if it took place within one year and six months and there is unpaid balance to the contractor or the seller (limited to those balance whose payment deadline falls after the loan availability date), it qualifies for a loan. The amount of loan never exceeds the amount of unpaid balance (A proof of unpaid balance must be attached.).
• Each loan is only granted for the necessary amount. The amount of a loan that can be taken out is the same as or below the purchase price and/or the construction fee. A loan from another financial institution, personal funds, and other co-owners' contributions are not considered to be part of the necessary amount.
• Loans will not be granted for the purchase of land, or a residence in a location that is not used for commuting to your place of work, purchased with a planned job transfer in mind, or to be used for living in after retirement.
• Loans are not granted for the purchase of the second home, or for the land for the second home. Loans are also not granted for the extension, alteration, relocation, and repair of the home of those who own two or more homes or lands. (A home or land in the spouse's name is included.)
• When an individual who has taken out a home loan in the past (including those who have paid off the loan) applies for a home loan again, an investigation will be conducted on the connection between the past loan property and the new loan property.
• Loans are not granted for home loan refinancing.
• Maximum amount that can be added to a home loan is 2,000,000 yen in the case of a subscriber with a continued enrollment period between five to ten years, and 3,000,000 yen in the case of a subscriber with a continued enrollment period of more than ten years.
• If the contract is annulled, the construction is cancelled, the loan property is transferred to a third party, or the individual moves out of the loan property after a home loan has been granted, the outstanding loan amount must be repaid in full immediately, because the loan was intended to meet the "needs of the loanee."

The Group Credit Insurance Plan(optional)

• Under this system, if a member with a housing loan dies or becomes severely disabled during the repayment period, the remaining amount of the loan will be automatically paid using the insurance premium received from the life insurance company so that the retirement benefit from the corresponding educational institution will not be reduced. Therefore, members can apply for a loan without anxiety and maintain the financial stability of the family.

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