Finda "One in Four Medium-Low Credit Customers Has a Credit Loan Interest Rate Below 9%"

7% Loan Customers Also at 9.2%
"Bringing Mid-to-Low Credit Borrowers into the Formal Financial System"

[Asia Economy Reporter Minwoo Lee] Among middle- to low-credit borrowers who took out loans through the loan comparison platform 'Finda,' one in four received interest rates of 9% or lower. This is seen as an achievement in bringing middle- to low-credit borrowers, who were previously excluded from loan services and often turned to illegal private loans, into the formal financial system.

Finda announced on the 18th that an analysis of loan executions by interest rate for middle- to low-credit customers with credit scores between 500 and 799 in the first half of this year showed that 24.4% of customers received products with annual interest rates between 4% and 9%. Customers who received products with interest rates between 10% and 16% accounted for 55.6%, while those with rates above 17% made up 20%.

Notably, 9.2% of customers received loans with an annual interest rate in the 7% range. A Finda representative explained, "This figure falls within the upper limit range of mid-interest rate loans offered by banks (6.5% annually) and mutual finance institutions (8.5% annually). In other words, despite being low-credit borrowers, they were able to receive interest rates comparable to bank mid-interest rate loans." Specifically, customers in the 500 score range accounted for 7.85%, those in the 600 range for 8.69%, and those in the 700 range for 10.63%.

Finda attributed this to the effect of the ‘JB Haetsallon Bank’ product launched in partnership with Jeonbuk Bank. Since May, Finda has been brokering this product to customers who have used existing policy-based low-income financial products for more than six months. It also handles loans for individuals undergoing personal rehabilitation. This product is a loan for individuals who have been discharged from personal rehabilitation or are repaying it, available to those who have faithfully followed their repayment plan for more than 12 months or have completed personal rehabilitation repayment within the past year.

Park Hongmin, co-CEO of Finda, advised, "Middle- to low-credit customers with credit scores between 500 and 700 often do not know well about the loan products they can receive, so they tend to fall into illegal private loans. If they carefully look for policy-based low-income financial products or specialized loan products for low-credit borrowers offered by financial companies, they can choose products that suit their situation well."

Meanwhile, Finda is conducting a pilot service called the ‘Refinancing Guarantee System.’ This service helps customers switch to loans with lower interest rates through accurate loan management linked with MyData (personal credit information management). If refinancing fails before the end of this year, a compensation of 50,000 KRW will be provided. Any customer with a credit score of 600 or higher and an annual interest rate in the 10% range can apply. However, customers with online investment-linked finance loans and loan business loans are excluded. Detailed information can be found through the Finda application (app).

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