Credit finance firms may launch Saitdol loans in H2 as mid-rate lending calculus grows complex

The government has opened the way for credit finance companies to handle Saitdol loans, a guaranteed product aimed at borrowers with mid-level credit, raising the possibility that related products could be released in the second half of the year. Saitdol loans are guaranteed mid-rate loans supplied to mid-credit borrowers, and their handling had previously been limited. If the measure expands participation to the credit finance sector, borrowers may gain more lending options. However, the industry’s stance is complicated because expanding mid-rate loans is tied to profitability, risk management and existing loan portfolios. Source: yna.co.kr