The accessibility of credit loans through online loan brokerage platforms is increasing the outstanding balance of private loans. Some analysts argue that this is a balloon effect, where borrowers with medium to low credit scores are moving to private lenders due to regulations on household loan totals in the 1st and 2nd financial sectors. However, financial authorities argue that there has been no significant change in the proportion of private loan users with low credit scores and interpret the increase in loans as a recovery process for the private lending market, which had shrunk after interest rate hikes. Currently, the total amount of loans for private lenders is limited to less than 10 times their own capital, and there are no additional regulatory plans, but there is also a possibility that loans will shrink in the long term due to interest rate hikes.
