From heart-broken to broke? Japan divorce loan helps

Japan's first-ever divorce loan caters to those who fell head over heels in love only to find themselves up to their necks in debt.

Named "Re" for those re-starting their lives, the loan helps divorcees cover the cost of compensation and legal payments and offers a lower interest rate than credit cards loans, on which Japan's growing number of divorce-seekers have depended in the past.

"It's not that we are recommending divorces", said Yoshimi Aoki, spokesman for Ogaki Kyoritsu Bank, based in Gifu, central Japan, which offers the loan.

"But we want people to feel more comfortable in visiting banks to consult on these issues," Aoki added.

In Japan, divorcees found responsible for the failure of their marriage - for example, because of their unfaithfulness - on average have to pay 4 million yen (17,000 pounds) in compensation to their former partners.

Aoki said that in the past, Japanese divorcees have often sought to pay off divorce debts with consumer finance loans or credit card loans, which tend to have annual interest rates of 15-20 percent. But with the newly launched divorce loan, divorcees can borrow up to 5 million yen, paying a floating interest rate that stood at 5.8 percent on Monday.