PFCT Partners with Eight Savings Banks: 34.2 Billion Won in Loans to 1,576 Borrowers Over Six Months

Annual Interest Rate at 12.2%
Only Three Cases of Delinquency Reported

A recent study has found that financial institution investments in online investment-linked finance (online lending) have effectively improved access to mid-rate loans for individuals with medium to low credit scores.

On December 11, PFCT released its first report card after operating its savings bank-linked investment, designated as an innovative financial service, for six months.

From May 29 to the end of last month, PFCT raised investment funds from eight savings banks and provided a total of 34.2 billion won in personal credit loans to 1,576 individuals. The weighted average interest rate for the loans issued was 12.2% per annum, with a delinquency rate of 0.2%. There were three cases of delinquency.

Korea Savings Bank, Daol Savings Bank, Seram Savings Bank, Smart Savings Bank, MS Savings Bank, OK Savings Bank, Incheon Savings Bank, and Hanwha Savings Bank participated in PFCT's linked investment. By complying with the savings banks’ Debt Service Ratio (DSR) regulations, they indirectly handled mid-rate personal credit loans. Some of the participating savings banks had either suspended or never directly offered personal credit loans in the past.

Among the 1,576 loan recipients, 91.7% were customers who typically use secondary financial institutions. The average credit score was 754 points. The average loan application amount was 21.71 million won. Loans for daily living expenses accounted for 93.4% of the total.

The weighted average interest rate of 12.2% per annum for all loans issued is lower than the 15.9% per annum average rate of the Sunshine Loan, a representative financial policy product for low-income individuals.

Compared to the average interest rates for savings bank credit loans (15.4% per annum) and card loans (14.8% per annum), the PFCT loans were offered at rates 2.3 to 2.9 percentage points lower, thereby reducing the financial burden on borrowers.

PFCT announced that it is comprehensively utilizing the proven full solution of Airpack, both domestically and internationally, for risk management in savings bank-linked investments.

PFCT’s mid-rate personal credit loans are processed 100% non-face-to-face. The shortest time from application to disbursement was 16 minutes, with an average processing time of 22 hours and 48 minutes.

Lee Suhwan, CEO of PFCT, stated, “We are providing quality funding to customers who use secondary financial institutions, while also delivering risk and operational cost reductions to savings banks participating in linked investments. We will do our utmost to encourage more financial institutions to participate in online investment-linked finance and to firmly establish PFCT as a reliable source of mid-rate loans.”

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