TAIPEI (Taiwan News) — The Ministry of National Defense on Thursday began an emergency loan program for service members, offering low-interest borrowing for situations including disasters, injury or illness, funerals, postnatal care, childcare, and long-term care, according to CNA.

Eligible personnel can apply for up to NT$600,000 (US$19,100) per category, with a combined ceiling of NT$1.2 million, and a new small-amount relief option capped at NT$200,000, while the interest rate is currently 1.695%.

The ministry said the policy is meant to provide a safer alternative to underground lenders and to reduce financial strain that can spiral into disciplinary trouble. It also cited risks such as falling for scams or becoming vulnerable to recruitment attempts by hostile intelligence services, such as those of China.

Applications are open to both volunteer and conscripted personnel. Borrowers do not need their unit to issue a supporting letter, a measure the ministry said protects privacy and expedites the paperwork. For loans of NT$100,000 or less, no guarantor is required.

Repayment will be handled through monthly deductions from salary by military finance offices, with remaining balances to be settled before personnel leave service. MND urged troops to use the program responsibly so assistance reaches those facing genuine hardship.