Temporary Loan: Emergency Funds for Foreigners

  • HOW TO
  • LIVE and WORK
  • SOCIETY
  • Have you checked them yet? Because of a shortage of workers due to its population decline, Japan has been accepting foreign workers from all over the world. Under the COVID-19 circumstances, however, both Japanese and foreign workers have been suffering from low income or unemployment. To help them during these financial difficulties, the government has implemented special measures for every worker regardless of their nationality. If you lost your job or currently have difficulties paying your living cost in Japan, then you should check these funds and benefits.

    1. Mainly for households that are facing temporary work shortages or lower income (Emergency Small Amount Fund)

    Previously, it was limited for low-income households only, but as a result of prolonged impact of COVID-19, the government expanded the target to more households.
    Now a household is eligible if its income has decreased due to COVID-19 even if the persons’ work has not stopped temporarily. Meaning that, if your income has decreased, then you can apply for this interest-free loan.

    If you meet one of the next criteria, the maximum loan amount is 200,000JPY (it was previously 100,000JPY).

  • In case a family member suffers from COVID-19
  • In case you have 4 or more family members
  • In case you need to take care of a child whose school is temporarily closed due to the pandemic
  • In case you need to take care of a child who is suspected to be suffering from COVID-19
  • In case your income is decreases due to lack of working opportunities or less work, and you have difficulties making ends meet
  • The deferment period is 1 year (previously 2 months), and the repayment deadline is within 2 years (it was 1 year previously). There is no loan interest, and a guarantor is not required.

    How to Apply

    Go to the Municipal Social Welfare Council of your city (Select your prefecture and your city written in Japanese). Once there, you will be asked to submit the following documents mentioned below.

  • Resident cards of all your family members
  • The copy of your bank book or cash card
  • ID (passport, my number card, driver license etc.)
  • And you need to fill in these 4 documents . Sadly, they are written in Japanese, but we have translated them for you.

    1. Application form(借入申込書)

    2. IOU(借用書)

    3. Disclosure statement(重要事項説明書)

    4. Statement of income decrease(収入の減少状況に関する申立書)

    2. Mainly for households that have suffered from unemployment (General Support Funds)

    If you lost your job and have difficulties making ends meet, you can get a loan for 3 months at the longest. If your family consist of 2 or more individuals, you would receive 200,000JPY per month; and if you live alone, it would be 150,000JPY per month.

    The deferment period is 1 year, and the repayment deadline is within 10 years. But if your household is categorized as a resident tax-exempt household at the time of redemption, you can ask to be exempted from the refund. There is no loan interest, and a guarantor is not required.

    How to Apply

    Go to the Municipal Social Welfare Council of your city with these documents as written below.

  • Residents cards of your all family members
  • The copy of your bank book or cash card
  • ID (passport, my number card, driver license etc.)
  • And you need to fill in these 4 documents.

    1. Application form(借入申込書)

    If you live alone, write 15 (for 150,000JPY per month) and 45 (for the total amount for 3 months). If your family consists of 2 or more people, write 20 (for 200,000JPY per month) and 60 (for the total amount for 3 months).

    2. IOU(借用書)

    3. Disclosure statement(重要事項説明書)

    4. Statement of income decrease(収入の減少状況に関する申立書)

    In this article, we have explained an overview of the Temporary Loan Emergency Funds and how to apply for them. We will provide you with information on the Housing Security Benefit in the next article. Stay tuned!