Revised Rates for Local Government Loans

The Ministry of Internal Affairs and Communications determined the applicable rates after rate reviews for local government loans funded by postal savings and simplified life insurance assets, and notified the Japan Post Insurance and Postal Network Support Organization. The notice presents tables for two rate review methods.

The loan period categories under the 5-year rate review method range from more than 20 years and up to 21 years to more than 29 years and up to 30 years. The rates for the categories, in order, are 1.5%, 1.8%, 1.9%, 2.1%, 2.2%, 2.3%, 2.3%, 2.3%, 2.3%, and 2.4%. Each rate is the same across all six deferment period categories: none, up to 1 year, more than 1 year and up to 2 years, more than 2 years and up to 3 years, more than 3 years and up to 4 years, and more than 4 years and up to 5 years.

The 10-year rate review method also lists 10 loan period categories, from more than 20 years and up to 21 years to more than 29 years and up to 30 years. The rates for the categories, in order, are 1.5%, 1.8%, 1.9%, 2.1%, 2.2%, 2.3%, 2.4%, 2.5%, 2.6%, and 2.7%. These rates are also the same across all six deferment period categories: none, up to 1 year, more than 1 year and up to 2 years, more than 2 years and up to 3 years, more than 3 years and up to 4 years, and more than 4 years and up to 5 years.

The deferment period categories in both tables are none, up to 1 year, more than 1 year and up to 2 years, more than 2 years and up to 3 years, more than 3 years and up to 4 years, and more than 4 years and up to 5 years. The applicable rate in the tables is determined by the loan period and deferment period at the start of the loan.