PFCT Issues First Credit Loan to Mid- and Low-Credit Borrowers at 12.1% Interest Rate

Collaboration Between P2P Finance and Savings Banks
Lowering Loan Barriers for Low- and Middle-Income Borrowers

On May 30, peer-to-peer (P2P) finance company PFCTechnologies (PFCT) announced that it has provided its first credit loan to mid- and low-credit borrowers, using funds linked to the savings bank sector.

This product is significant in that it is a collaboration between P2P finance and the savings bank sector, aiming to reduce financial blind spots for low-income individuals and to offer new lending opportunities to mid- and low-credit borrowers.

The loan amount is 30 million won. It was issued to a mid- and low-credit borrower with a credit score in the 660 range. The funds were sourced from Goryeo Savings Bank, MS Savings Bank, and Smart Savings Bank.

The final interest rate offered is 12.1%. A PFCT representative stated, "Considering that the average interest rate for mid- and low-credit borrowers is usually around 18%, this is a significantly lower level."

As of 5:00 p.m. the previous day, PFCT reported that there had been more than 93,000 loan inquiries. The credit scores of applicants ranged from 595 to 1,000 points.

PFCT highlighted the significance of active loan inquiries from mid- and low-credit borrowers with scores in the 595 to 839 range.

Lee Suhwan, CEO of PFCT, said, "We will expand our loan products by partnering with more savings banks," adding, "We will strive to improve financial accessibility for mid- and low-credit borrowers based on advanced artificial intelligence (AI) risk management technology."