“95% of On2Up credit loans are medium-interest loans… 45% of people with low credit”

Among the personal credit loans of six online investment-linked financial companies (On2 companies), private mid-interest loans were found to account for close to 95%.

The proportion of people with low credit, who are in the bottom 10% of credit scores, reached 45%, and an analysis showed that On2Up is acting as a loan window for people with low to medium credit.

According to the Online Investment Linked Finance Association on the 10th, as of the end of September this year, the proportion of private mid-interest loans among the personal credit loan performance of six on-investment companies (Money Move, Mouda, Honest AI, Eight Percent, PFCT, and Hanpass Financial) participating in investments linked to financial institutions was calculated to be 94.8%.

Supply to borrowers in the bottom 10% of credit scores (credit score of 675 points or lower) based on Korea Credit Bureau (KCB) also accounted for 45%.

The average credit score of all borrowers was 686 points.

The association explained that this proportion of loans supplied to those with low to medium credit is higher than the 32.4-38.4% of the three internet-only banks (Kakao, Toss, and K Bank) providing new credit loans to those with low to medium credit.

The six companies' personal credit loan delinquency rate was 1.09% (including delinquency of 30 days or more and personal rehabilitation), and the average loan interest rate was 11.72% per year.

Previously, On2 Industry has been expanding the supply of related loans since launching investment services linked to the savings banking industry and financial institutions in May last year.

As of the end of September this year, the cumulative amount of personal credit loans handled by the six companies was 811.4 billion won. A total of 53,038 new borrowers received loans during this period.

The association explained that the monthly new handling amount increased approximately 36 times from 2.75 billion won in May last year to 99.94 billion won in September this year.

Savings banks’ participation in linked investments is also expanding. As of September, 20 savings banks were participating, and the average monthly investment per savings bank was 2.519 billion won.

Association Chairman Hong Jae-moon said, “Inclusive finance is the starting point and reason for On2Up’s existence,” and added, “We will work with the industry to create a fair competitive environment so that the On2in industry’s will to innovate is not discouraged.”