Online Loan Market - KODIT

A cyberspace is created by KODIT where SMEs and financial institutions can voluntarily exchange information regarding bank loans

Introduction

 Online Loan Market’, which was introduced in December 2010, is a win-win service for both SMEs and financial institutions. It provides SMEs with a chance to get lower loan interest by comparing variety of banks’ loan portfolios posted on the KODIT’s website while financial institutions can make access to potential customers without spending excessive marketing expenses. When an SME and a bank agree to proceed loan, bank transmits application to KODIT through the online loan market and KODIT issues the credit guarantee certificate if the SME meets certain standard after credit investigation and evaluation

Procedure

SMEs

• After registering as a member at www.kodit.co.kr, a company fills out "loan application" form including its business information, financial status and ideal loan condition
• E-mails to banks asking for specific loan portfolios are sent automatically when a company picks financial institutions it wants to get information from
• A company chooses best loan option after comparing various banks' suggestions and decides where to get a loan. When decided, the company submits an application to KODIT for its credit guarantee service

Financial institutions

• After registering as a member at www.kodit.co.kr, a financial institution posts details on loan portfolios and updates them regularly
• A bank responses quickly when received an e-mail from a company asking for specific loan condition and if the company decides to get a loan from the bank, the bank sends an application to KODIT via online to get credit guarantee service

Effect

• "Online Loan Market" enables SMEs to choose most suitable loan condition when applying for a bank loan by comparing various banks' interest rates on the web site. It saves a lot of time and effort: companies seeking to get a loan might have visited each and every bank branch in town to collect loan information, if not for this system.
• For financial institutions' part, "Online Loan Market" enables banks to be easily reached by their potential customers without spending huge amount of money in marketing. Via this web site, financial institutions can reach about 22 million SMEs newly applying for KODIT's credit guarantee system who are more than willing to get cheaper loan interest rate.

KODIT will try its best to make "Online Loan Market" a cyberspace that paves the way for both SMEs and financial institutions.