Viva Republica, operator of Toss, is joining hands with SBI Savings Bank to introduce mid-rate credit loans for middle-to-low credit borrowers using alternative credit assessment.

Toss said on July 20 that it signed a business agreement with SBI Savings Bank on July 16 at the Toss Sinnonhyeon office in Gangnam, Seoul, to expand inclusive finance.

The two companies plan to launch "SBI Inclusive Loan with Toss" on July 27 for middle-to-low credit customers. Interest rates range from a minimum annual 7.9 percent to a maximum annual 13.5 percent. The loan will be available only through the Toss app's "Find a loan that suits me" feature.

The product will apply Toss Score, an alternative credit assessment model jointly developed by Toss and Korea Credit Data.

Toss and SBI Savings Bank plan to broaden the assessment of repayment capacity for customers whose loan screening was difficult based only on existing credit scores, expanding the pool of borrowers eligible for mid-rate loans.

Starting with this product, the two companies plan to develop additional financial products using Toss Score. They plan to gradually expand the scope of alternative credit assessment from the second half of the year to increase loan supply for middle-to-low credit borrowers.

Lee Seung-gun (이승건), CEO of Toss, said, "I hope that customers who have faced high barriers to loans will also be able to get opportunities at interest rates that match their circumstances."