Cocktail Funding Judam Loan and Credit Loan Toss Store Opened... Launched in October for people with low credit
Quick Look
- Toss, operated by Viva Republica, has entered into a strategic partnership with Cocktail Funding to sequentially introduce home mortgage and credit loan products into the Toss loan comparison service.
- Credit loans for people with low credit are scheduled to be launched in October, and will focus on supporting the financially underprivileged who have difficulty receiving loans due to their credit ratings even though they have collateral or the ability to repay.
AI-generated summary
Why It Matters
The financially underprivileged often have difficulty using institutional finance due to their low credit ratings, and fintech companies are introducing alternative credit rating models to solve this problem.
Toss, operated by Viva Republica, announced on the 30th that it signed a strategic business partnership agreement (MOU) with Cocktail Funding.
The day before, the two companies held an agreement ceremony at Ark Place in Gangnam-gu, Seoul, with Kim Jin-hyung, head of Toss Financial Business Division, and Kim Un-ha, CEO of Cocktail Funding, in attendance.
Under this agreement, Cocktail Funding's home mortgage loan and credit loan products will be sequentially launched in the Toss loan comparison service.
Users can check the product and apply for review through the Loan menu within the Toss app.
Home mortgage loans can be reviewed and checked immediately, and credit loans for low-credit customers are scheduled to be introduced in October.
Both companies plan to focus on supporting middle- and low-credit borrowers and the financially underprivileged who had difficulty using existing institutional loans due to low credit ratings despite having collateral or repayment ability.
For borrowers who have difficulty proving regular income or employment, the collateral held is considered, and for borrowers with low credit scores, the screening method focuses on actual repayment ability.
Cocktail Funding is operating by making extensive use of public data and expanding the scope of screening to include homes for which it was difficult to calculate value based on existing market information alone.
Kim Jin-hyeong, head of Toss Financial Business Division, said, "There are many users who were unable to get a loan due to their credit rating even though they had sufficient collateral or repayment ability," and added, "Through this collaboration, we will actively expand opportunities for the financially underprivileged to secure funds within the institutional system."
What to Watch
AI outlook — possibilities, not facts
Credit loans for people with low credit will be launched through the Toss app in October.
Very likely · Within weeks
Through the partnership between Toss and Cocktail Funding, the amount of loans provided to the financially underprivileged will increase.
Likely · Within months
Open Questions
- How will the specific interest rates and limits for credit loans for people with low credit be determined?
- Are there any other P2P companies participating in the Toss loan comparison service?
- How much will the loan approval rate for the financially underprivileged actually improve through this partnership?
