"Loan Refugees Flocked to Private Lenders": Finda's Preferred Lender Deal Volume Tops 100 Billion Won

[Financial News] As household loan regulations have remained in place, so-called "loan refugees" have been driven to preferred private lenders, according to a recent report.
On the 26th, FinTech company Finda said the cumulative deal volume of its preferred lender brokerage service had surpassed 101 billion won.
Finda launched the industry's first brokerage service for loan products from preferred private lenders in October last year. Five months after the launch, it had already reached 50 billion won in deal volume. It has now topped 100 billion won in less than a year.
Financial authorities are currently operating an "excellent lender incentive" program that helps lenders with a large share of loans to low-credit borrowers raise funds at lower rates from commercial banks. In the first half of this year, the Financial Supervisory Service selected 23 lenders for the program. Finda has partnered with 17 of them and currently offers 31 products.
Cumulative credit limit inquiries and applications for preferred lender products reached 800,000 and 200,000, respectively. From June, when household loan regulations were tightened further, through last month, deal volume hit its highest level since the service launched. Over the same period, credit limit inquiries rose from 78,000 in June to about 100,000 last month, the highest level in 10 months.
Usage was concentrated among mid- to low-credit borrowers. An analysis of usage data by credit score showed that users with scores in the 500 to 700 range accounted for nearly 90% of all credit limit inquiries. This suggests that preferred lender products are serving as a practical financing option for borrowers with weaker credit who have relatively limited access to loans from traditional financial institutions.
Hyemin Lee, CEO of Finda, said, "Over the past year and a half, our preferred lender products have provided new options and opportunities for mid- to low-credit borrowers who have struggled to secure loans from financial institutions as regulations have tightened." She added, "We will continue to expand product offerings and analyze customers' financial situations more precisely so that more consumers can access suitable loan products and enjoy broader financial choices."
Meanwhile, Finda was founded in 2015 as an online loan brokerage company and provides services with the vision of creating a world where everyone can live without worrying about cash.

[email protected] Hyemin Lee Reporter