Japanese consumer credit company Orient Corp. will tie up with more than a dozen regional banks nationwide in October to expand its new loan business aimed at helping people buy empty houses, company officials said.
The service, "Akikatsu Loan," is expected to help reduce the growing number of unoccupied houses in the country, driven by a falling population and a rapidly aging society.
Banks are usually reluctant to offer loans to people wanting to buy empty homes due to their low value as collateral, but partnering with Orient will make it easier for them to approve such loans as they can count on its know-how in the consumer credit business, such as car loans, to avoid nonperforming debts, they said.
According to government data, there were 3.49 million empty houses nationwide with no plans for their use as of 2018. The number is projected to rise to 4.7 million in 2030 if no measures are taken.
The loan can also be used for renovation, which lowers hurdles for potential homebuyers to purchase such houses, the company said.
Orient will also collaborate with housing venture Akiya Katsuyo Co., which offers potential buyers an online database of empty houses surveyed by local governments and available for sale. After they apply for a loan, Orient will conduct preliminary reviews, such as their annual income, before the regional banks offer financing.
The regional banks joining the service include Kita-Nippon Bank in Iwate Prefecture, Chiba Kogyo Bank in Chiba Prefecture, Kiraboshi Bank in Tokyo, and Shonai Bank in Yamagata Prefecture.
Orient, widely known as Orico, offers various financial services such as auto loans, education loans, and credit card services.
