Bank offers divorce loan

In response to Japan's rising divorce rate, a new bank loan tailored to meet the financial needs of new divorcees has become available. The Ogaki Kyoritsu Bank, based in Gifu prefecture, launched the low-rate loan on October 1. People aged 20 to 65 with an annual income of more than 2 million yen are able to apply for a non-secured loan of up to 5 million yen to help offset compensation payments, distribution of assets and legal fees that arise from divorce proceedings. In contrast to the 18 to 20 per cent interest rates on some consumer finance loans, the interest rate for the new "divorce loan" is 5.85 per cent.