JB Financial Group's Kwangju Bank, Toss Bank launch joint loan

A model shows a promotion for a joint loan product launched by Kwangju Bank and Toss Bank. Courtesy of Kwangju Bank

Kwangju Bank and Toss Bank launched a joint loan product, the first of its kind in the Korean financial industry.

The new loan product combines Kwangju Bank's knowhow in personal loans with Toss Bank's nationwide business platform, according to the banks.

The Financial Services Commission designated the product an "innovative financial service" in June, proving its safety and viability.

When a customer applies for a loan through the Toss Bank app, the two banks review the loan application, after which they jointly determine the loan limit and interest rate. Each bank shoulders half of the loan amount.

The joint loan product is expected to be a "win-win" for the two banks, as Kwangju Bank gains access to internet-only Toss Bank's nationwide customer base and the latter can expand its funding capacity through the regional bank under JB Financial Group.

They expect the product will improve customers' accessibility to and convenience in taking out loans as they can apply for loan evaluations by the two banks through the Toss Bank app.

Customers can also get loans at more accurate and reasonable interest rates as the evaluation is multi-dimensional, based on the credit assessment models of both banks.

The banks said, " 'Together Loan' is the result of the long efforts and cooperation between the two banks. We hope 'Together Loan' will be well-received by many financial consumers, and we will continue to strive to return this support with even more benefits."