Statistics show that online investment-linked financing (online investment-linked financing business) has improved access to mid-rate loans for mid- to low-credit borrowers through co-investments with savings banks.
On Dec. 11, PFCT said that from May 29 to the end of Nov., it supplied a total of 34.2 billion won in personal credit loans to 1,576 people based on investment funds from eight savings banks. The weighted average interest rate on the loans was 12.2%, and the arrears rate was only 0.2%.
Eight savings banks—Goryeo, Daol, Seram, Smart, MS, OK, Incheon, and Hanwha—participated in PFCT's co-investment. Complying with the total debt service ratio (DSR) regulation for savings banks, they indirectly handled mid-rate personal credit loans.
Of the 1,576 loan users, 91.7% were users of secondary financial institutions, and the average credit score was 754. The average requested amount was 21.71 million won. Of all loans, 93.4% were for living expenses.
The weighted average interest rate on the total loan amount was 12.2%, lower than the average rate of 15.9% for the inclusive finance policy product "Sunshine Loan." In particular, the average rate for mid- to low-credit borrowers with credit scores between 701 and 800 was 12.5%. This is 2.3 to 2.9 percentage points lower than the average savings bank rate of 15.4% and card loan rate of 14.8% for the same credit score range. The arrears rate was 0.2% over six months, a very low figure compared with secondary financial institutions.
PFCT's mid-rate personal credit loan is 100% non-face-to-face; from application to deposit, the shortest processing time is 16 minutes, and the average is 22 hours 48 minutes, allowing borrowers to receive funds within one day.
PFCT CEO Lee Su-hwan said, "Because this is a personal credit loan service we have prepared while waiting a long time for regulatory relief, we will provide better funding to customers using secondary financial institutions based on our accumulated technology."