PeopleFund Supplies 100 Billion KRW in Mid-Interest Credit Loans
[Asia Economy Reporter Kim Min-young] PeopleFund, a peer-to-peer (P2P) finance company, announced on the 9th that its cumulative performance in mid-interest personal credit loans has surpassed 100 billion KRW.
According to PeopleFund on this day, the supply performance of its personal credit loan product, 'PeopleFund Loan,' reached 105.5 billion KRW as of the end of November last year.
It is analyzed that focusing on mid-credit borrowers who were considering loans from first-tier financial institutions such as banks and relatively high-interest second-tier financial institutions paid off. Looking at the borrower composition of PeopleFund Loan, borrowers with credit ratings between 4 and 7 account for 82% of all loans, with those rated 5 making up the largest portion at 31%. The company explained that they gradually expanded the target loan customers based on a credit evaluation model specialized for mid-interest rates.
P2P borrowers experienced both interest savings and credit rating improvements. Among loan purposes, refinancing existing high-interest loans accounts for 77% of the total, and customers who refinanced through PeopleFund saw an average interest reduction of 5.83% compared to their previous loan rates. Additionally, those who repaid diligently showed an average credit rating improvement of one grade (from an average of 4.95 to 3.95).
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A PeopleFund representative said, "To expand mid-interest supply, we built the country's first integrated system between P2P and banks in cooperation with partner banks, focusing on more accurately assessing the credit risk of mid-credit borrowers," and added, "while maximizing the advantages of existing financial institutions, as a fintech company, we introduced new evaluation methods and analyzed about 200 million pieces of diverse financial data from over 100,000 loan members over the past four years." The company's personal credit loan delinquency rate is 1.21% (as of the end of November last year), which is considered favorable.
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