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