Third-party coverage offers Dianrong customers added protection
SHANGHAI, March 29, 2018 /PRNewswire/ -- Dianrong and China United SME Guarantee Corporation, known as Sino Guarantee, one of China's leading guarantee companies, today announced a new lenders protection plan for Dianrong customers. The plan, which went into effect at the beginning of 2018, is designed to provide third-party protection in the event of a loan default.
Dianrong's borrowers now have the option to purchase the Sino Guarantee lenders protection plan, which further improves the borrower's risk and credit profile. Sino Guarantee will then use a dedicated fund account to pay lenders the loan principal and any outstanding interest in the event of a loan default covered by the plan.
Additionally, once the lenders are paid following a default, Sino Guarantee will then initiate and manage borrower repayments directly. After deducting repayment costs, the remaining funds will be deposited to a dedicated account held by Bank of Shanghai and administered by Sino Guarantee.
The Sino Guarantee lenders protection plan fully complies with China's new P2P guarantee regulatory requirements. Also, all funds within the plan are monitored by the custodian bank.
"Risk management is part of Dianrong's DNA and is central to our business planning and execution. Sino Guarantee has excellent capital strength and compliance systems, and this collaboration provides lenders and borrowers with an independent protection mechanism and further strengthens Dianrong's position as a leading online lending marketplace," said Bryan Pang, Chief Risk Officer at Dianrong.
Sino Guarantee added that Dianrong possesses formidable strength in financial technology and is also an industry leader in terms of compliance. Both were important factors in their choice of partnering with Dianrong to launch their first lenders protection plan.
Beyond this new third-party guarantee, Dianrong's advanced technology and risk-management capabilities continue to minimize non-performing loans (NPLs) on its online marketplace lending platform. As of year-end 2017, Dianrong's NPL ratio was 2.9% for outstanding balances 90 days or more past due.
About Sino Guarantee
Sino Guarantee was officially registered in 2012 at the State Administration for Industry and Commerce with a registered capital of RMB 7.1764 billion. It is a Chinese-foreign joint venture cross-border finance guarantee organization. It is also currently one of the guarantee organizations with the largest investment scales in China, as well as being the first finance guarantee company to be given an AAA credit rating by a rating company. Sino Guarantee's shareholders include Tianjin Tianhai Investment Co., Ltd., HNA Capital Group Co., Ltd., Baowu Steel Group, Export-Import Bank of China, JPMorgan Chase & Co. and others.
Dianrong is a leader in online marketplace lending in China. Founded in 2012 and headquartered in Shanghai, Dianrong offers small businesses and individuals a comprehensive, one-stop internet platform providing financial information and services supported by industry-leading technology, compliance and transparency. The company's sophisticated and flexible infrastructure enables it to design and customize lending and borrowing products and services, based on industry-specific data and insights, all supported by online risk-management and operation tools. Dianrong's specific offerings include marketplace lending-related services and fintech solutions. Dianrong was named in 2016 to the executive directorship of the National Internet Finance Association of China, led by the People's Bank of China. For more information, please visit: www.dianrong.com/en.