Low-Credit Borrowers Benefit from New Investment Model as PFCT Supplies $1.86 Billion

A linked investment model between savings banks and online investment firms has supplied over 1.8 trillion won ($1.86 billion) in mid-interest loans within a year.

PFCT (PFCT Technologies) announced on June 11 that it has provided personal credit loans totaling 1.866 trillion won to 10,683 low-credit borrowers using funds from 17 savings banks over the past year.

This amount represents a 5.5-fold increase compared to 342 billion won in November of last year, when eight savings banks participated. The service was launched just one year ago.

The competitive loan interest rates contributed to this growth. The weighted average interest rate for loans issued during the year was 11.01%, approximately 1.5 percentage points lower than the average rate of 12.52% for Sunshine Loans and the minimum rate of 12.5% for savings bank loans.

The beneficiaries of these mid-interest loans had an average credit score of 743 (based on NICE standards). PFCT reported that over 85% of the loans were granted to borrowers with credit scores between 600 and 799. Additionally, 31.15% of the total loans were issued at interest rates below 10% per year.

The financial health indicators also remained at a healthy level. PFCT's delinquency rate stood at 0.37%, significantly lower than the average delinquency rate of over 9% for the savings bank sector as of the first quarter of this year.

Lee Soo-hwan, CEO of PFCT, stated, "The combination of online investment technology and savings bank capital has confirmed that a private mid-interest model can effectively bridge the interest rate gap in the market. We will continue to enhance financial accessibility for low-credit borrowers and expand the ecosystem of inclusive private finance."