The Chung Mong-koo Foundation, funded by the Hyundai Motor Group chairman, said Sunday that it would start receiving applications for low interest rate loans from college students coming from low-income households.

The scholarship program is part of the foundation’s five-year plan, which was launched in November to nurture talented, but underprivileged students. The Hyundai chief contributed 500 billion won ($440 million) last year ― the largest individual donation here. 

Hyundai officials said that it would help students who are paying high interest rates on loans convert to a 6 percent interest-rate loan, of which 3.5 percent interest payment will be supported by the foundation.

For those who cannot afford to take out loans, Hyundai will provide loans at 6 percent interest rates. The final repayment is allowed to be made in the coming 10 years, including a five year grace period.

The beneficiaries, except those aged under 20, can apply for the program without recommendations from schools or guarantees from their parents. About 13,000 students are expected to benefit, officials said.

This year the foundation plans to offer scholarship to an additional 1,250 students who are artistically or scientifically talented, those who lost a family member in car accidents and the bereaved children of crew members of the sunken navy ship Cheonan and dead police officers.

By Lee Ji-yoon (jylee@heraldcorp.com)