The Health, Labor and Welfare Ministry plans to launch a program offering monthly loans of up to 200,000 yen for self-employed people who have been forced out of business due to government efforts to reform the economy, government officials said Thursday.
The loan initiative is part of a set of employment measures designed by the ministry to deal with a record-high unemployment rate of 5 percent and growing bankruptcies, the officials said.
The ministry will request funding for job development measures in a supplementary budget for this current fiscal year, they said.
The job measures include establishing new core facilities to promote job placement in Tokyo, Saitama and Osaka prefectures.
The ministry will also step up efforts to boost employment of disabled people.
Although the main target of the loan scheme is individual proprietors, it will also cover other types of workers or unemployed people in need of financial help. Included are part-time workers and those whose eligibility for unemployment insurance benefits have expired, the officials said.
Under the plan, the monthly loan can be extended for up to one year.
Interest is 3 percent per year, but there will be an interest-free period of up to six months, after which borrowers will be required to repay the loans within five years.