ibaive.com reported on Friday that ByteDance’s Toutiao has officially launched a brand-new product for small and micro loans named “Fangxinjie, Businessmen Only”. Its target customers are small and micro companies, and its interest rate and quota are more competitive than that of Fangxinjie.
This product has filled in the blank in Toutiao’s credit business. Toutiao is targeting consumers and enterprises through its online small loan licenses, and thereby forging ahead in a dual-line pattern of consumer loans and small and micro loans.
Product information suggests that consumers are able to borrow as much as 300,000 yuan from Fangxinjie, Businessmen Only, with the annual interest rate between 7.2% and 18%, much lower than that of Fangxinjie, which is 10.8%-24%. Compared with micro-loan products on other platforms, Toutiao enjoys a competitive advantage for its interest rates.
Shortly before this product was unveiled, Toutiao obtained the necessary online licensing for small loans. In October this year, Shenzhen Zhongrong Microfinance Co., Ltd. changed its shareholder and now 100% of the shares are held by Shenzhen Toutiao Company.
With a small loan license, Toutiao has changed its credit products, such as Fangxinjie, from loan assistance to independent operations. That is to say, these loan services will be provided by Zhongrong Small Loans or other institutions wholly owned by Toutiao.