Toss, operated by Viva Republica, has teamed up with SBI Savings Bank to introduce a mid-rate loan product aimed at individuals with lower credit scores.
The new loan, named 'SBI Inclusive Loan with Toss,' will be launched on July 27, according to an announcement made on July 20.
This product targets customers who have struggled to access traditional loans due to low credit scores or insufficient financial history. Interest rates will range from 7.9% to a maximum of 13.5% annually.
A key feature of this loan is its use of Toss's alternative credit evaluation model, known as 'Toss Score.' This model assesses creditworthiness by analyzing a wide range of financial activities, including account transactions, card usage, and investment and insurance payment histories, in addition to traditional financial transaction data.
This approach allows for a broader evaluation of repayment capabilities, particularly for young professionals and homemakers who may have been disadvantaged by existing credit assessment systems.
Toss plans to expand its data-driven financial collaboration with SBI Savings Bank through this partnership. The companies aim to jointly develop various financial products utilizing Toss Score to enhance financial accessibility for individuals with lower credit ratings.
Lee Seung-gun, CEO of Toss, expressed hope that this collaboration would provide opportunities for customers who have faced high barriers to loans, allowing them to secure loans at rates that suit their circumstances. He added that Toss will continue to explore various initiatives to ensure more customers can benefit from financial services.
* This article has been translated by AI.
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