Lendit, a peer-to-peer lending platform operator in South Korea, has extended a combined 101.8 billion won ($95.4 million) in nearly 7,300 consumer loans as of Monday to midrange borrowers seeking lower interest rates, according to the fintech startup Monday.
After its 33 months of operation, Lendit marked the first local P2P lending platform operator fully devoted to consumer loan products to see the accumulated volume of loans top the 100 billion won mark, the company said.
Borrowers from Lendit were offered loans at an average interest rate of 10.9 percent, according to the firm’s estimate.
In Korea, borrowers holding midrange credit scores -- normally between 4 and 6 on scale of 10 -- face more difficulties finding loans at corresponding interest rates. Commercial banks are highly likely to offer personal loans exclusively to those with credit scores higher than 3, leaving midrange borrowers with choices for loan products that offer roughly double that of Lendit‘s average in conventional banking industry.
As for investors, Lendit offered investment instruments with higher interest rates than banks‘ deposits or savings, in part by giving tax benefits worth a combined 7.5 billion won to investors, the firm added.
By Son Ji-hyoung