Financial Services Commission Selects 21 Outstanding Microfinance Lenders for Low-Income Consumers

Providing Incentives Including Allowing Bank Borrowing

[Asia Economy Reporter Jin-ho Kim] The Financial Services Commission announced on the 30th that it has selected 21 companies as excellent microfinance lenders. The excellent microfinance lender system was introduced as a follow-up measure to the reduction of the maximum interest rate. Selected lenders can receive various incentives, such as being allowed to borrow from banks.

The Financial Services Commission explained that after reviewing the applications submitted by 21 companies, all were deemed suitable and thus selected as excellent lenders. The selected lenders include Afropay Financial, Leadcorp, Million Cash Loan, among others. The detailed list can be found on the Financial Supervisory Service website and the integrated registered loan company inquiry site.

These companies are allowed to borrow from banks and to mediate loan products through online loan brokerage platforms. Additionally, the total asset limit has been relaxed from the previous 10 times to 12 times.

The Financial Services Commission plans to regularly check the maintenance requirements for the 21 selected excellent microfinance lenders to ensure smooth and continuous funding supply to low-credit borrowers.

Furthermore, additional applications will be accepted semiannually (in February and August), and if they meet the selection criteria, more excellent microfinance lenders will be selected.

A Financial Services Commission official stated, "We will continue to promote the introduction of incentives so that the excellent microfinance lender system can settle in the market and lead to an expansion of low-credit loan supply capacity."

This content was produced with the assistance of AI translation services.