Toss Bank Resumes Loan Operations... "Providing Broad Opportunities"

[Asia Economy Reporter Kiho Sung] Toss Bank announced on the 29th that it will resume loan operations. Accordingly, starting January 1 next year, any Toss Bank customer will be able to use credit loan products.

Toss Bank had suspended new loan services since October 15 in compliance with the government's household debt stabilization policy. Through this resumption of loan operations, Toss Bank plans to provide customers with customized limits and interest rates with just one click on the ‘Check My Limit’ service. As a non-face-to-face internet-only bank operating 24/7, customers can use the service even during the New Year holidays.

The minimum interest rate is in the low 3% range per annum, and the maximum limit is 270 million KRW. Customers can choose according to their needs from the ‘Toss Bank Minus Account,’ where interest is charged only on the amount used, and the ‘Toss Bank Emergency Fund Loan’ with a maximum limit of 3 million KRW.

A Toss Bank representative stated, “We plan to provide equal loan opportunities without discriminating customers based on their credit scores.”

Practical benefits are also given to loan users. Even if the loan is repaid before maturity, there is no ‘early repayment fee.’ Loans can be repaid in a lump sum at maturity (on a yearly basis, extendable up to 10 years) or in installments of principal and interest according to the customer's needs.

If credit scores improve due to promotion, job change, or faithful repayment, Toss Bank will proactively guide customers to exercise their ‘right to request a lower interest rate.’ It also notifies customers in advance of necessary information related to their creditworthiness, such as delinquency alerts, so they do not miss important updates.

A Toss Bank representative said, “Instead of using customers' credit scores as a barrier to entry, we will discover ‘healthy middle-to-low credit borrowers’ and provide broad and reasonable loan services,” adding, “We expect credit improvement effects for middle-to-low credit customers, such as self-employed individuals who have faced difficulties due to COVID-19.”

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