Viva Republica, the operator of Toss, is teaming up with online investment-linked finance (P2P) firm Cocktail Funding to expand loan options for financially underserved groups, including low credit borrowers.

Toss said on Tuesday it signed a strategic business partnership memorandum of understanding (MOU) with Cocktail Funding to promote inclusion of financially underserved groups.

Under the agreement, Cocktail Funding's mortgage loans and credit loans will be listed on Toss' loan comparison service. Users can check the products and undergo screening through the 'Get a Loan' menu in the Toss app.

For mortgage loans, users can apply for screening after entering relevant information. Credit loans for low credit customers will begin operating in October.

Cocktail Funding conducts loan screening using collateral, repayment capacity and public data, among other factors. It says it is also broadening financial access by including in its screening scope homes that were difficult to evaluate using only existing market price information.

The two companies plan to provide regulated-sector loan options to customers who have collateral or repayment capacity but have had difficulty using traditional financial institutions due to low credit scores and other factors.

Jin-hyung Kim (김진형), head of Toss' financial business division, said, "Through cooperation with Cocktail Funding, we will widen the path for financially underserved groups to secure the funds they need within the regulated sector."