Online Loan Agency Lending Volumes Double in 10 Months... No Plans for Additional Regulations

[Economy 365]

Loans from private loan agencies continue to maintain an upward trend.

The number of loan contracts processed last month by Finda, an online loan brokerage platform, reached 1,997, marking roughly a double increase compared to October of last year when the service was first launched.

The monthly contract volume has also surpassed 10 billion won for four consecutive months starting last March, with credit loans alone reaching 6.5 billion won last month.

The loan balance of registered private loan agencies stood at 13.1402 trillion won at the end of last year, an increase of more than 600 billion won compared to the end of 2023.

While some analyses attribute this to a balloon effect stemming from regulations on tier-1 and tier-2 financial sector loans, financial authorities view it as part of a recovery process for the previously stagnant private loan market.

Furthermore, authorities noted that private loans are already capped within 10 times a lender's capital, stating that there are no plans for additional regulations.

*This article was produced with AI audio.
※ Please note: This article was translated by AI and may contain errors.