Japan to offer interest-free loans to elderly to quake-proof homes

Japan is considering offering interest-free loans to people aged 70 and older to reinforce their homes against earthquakes in the wake of a devastating temblor on New Year's Day, a government source said Wednesday, Kyodo reports. 

Under the new plan, borrowers will be able to use their homes and land as collateral to secure loans for retrofitting their residences, while the government will cover the monthly interest payments, the source added.

Prime Minister Shigeru Ishiba has pledged to take steps to make Japan more resilient to natural disasters. On Tuesday night, a powerful earthquake struck the Noto Peninsula again, a region still undergoing recovery efforts from the Jan. 1 temblor.

The loans will be repaid by the homeowner's heir after their death, such as through the sale of the property, eliminating the need for repayment during the borrower's lifetime in an aging society, according to the source.

Funding for the measure is likely to be incorporated in a supplementary budget for fiscal 2024 through March next year, as many elderly people in Japan have become more reluctant to quake-proof their homes due to the financial burden.