[Japan] LINE Pocket Money for Personal Loans Launches Today

2019.08.29 Financial Services

● Offers a personalized loan service based on a user's credit score from LINE Score

● Links with LINE Pay, enabling users to complete entire borrowing process (applying, borrowing, and repayment) on the LINE app

TOKYO – August 29, 2019 – LINE Corporation ("LINE") announces that its group company LINE Credit Corporation ("LINE Credit")*1 has today launched the unsecured personal loan service, LINE Pocket Money, for Android.*2
*1 LINE Credit Corporation is a joint venture formed by LINE Financial Corporation, Mizuho Bank Ltd., and Orient Corporation.
*2 The iOS version was released on September 2.
LINE Pocket Money combines traditional credit information,*3 and Mizuho Bank and Orient Corporation's credit assessment know-how with a user's credit score from LINE Score*4 to determine the best loan interest rate (annual) and loan amount for each individual user.
The service also links with LINE Pay, allowing users to complete the entire borrowing process—from application, to borrowing, and repayment—on the LINE app. It is perfect for those unexpected expenses, such as when needing to cover for someone else, sending money to a friend, bills, or when a little short on funds during a shopping trip. No visits to an ATM or store are required—users can access the LINE app wherever they are and instantly add (borrow) funds to their LINE Pay account. They only need to add the amount they need, starting from as little as one yen. Through LINE Pocket Money's LINE account, users will be notified of the results of their application screening, receive reminders of upcoming repayment dates, and can also manage their information for various procedures. Since all of this can be done with just a smartphone, the service makes it easier than ever for users to check their loan status and keep on top of their repayments.
With this, LINE Pocket Money is able to offer loan conditions suited to the diverse lifestyles of each and every user. The ability to "top up" a LINE Pay account at any time from the LINE app, with as little or as much as needed, is what makes LINE Pocket Money a loan service for the individuals of today.
*3 In accordance with the Money Lending Business Act, LINE Pocket Money references personal credit history owned by credit information bureaus.
*4 Press release: LINE Launches Proprietary Scoring Service LINE Score to “Enrich Daily Life” https://linecorp.com/en/pr/news/en/2019/2771
Background to LINE Pocket Money's development and going forward
Conventional lending services generally use the same standard method to judge an applicant's creditworthiness. However, many aspects of peoples' daily lives have rapidly shifted to the online world, resulting in more and more diversified lifestyles. Working styles are also changing along with the recent advancements in technology, with an increasing number of freelancers and people starting their own businesses.
Against this background, LINE Pocket Money provides an even more personalized credit assessment experience, made possible by combining traditionally used personal credit history and the credit assessment know-how of partner financial institutions with a user's score from the LINE Score service. Even for people who have felt hesitant to use lending services, LINE Pocket Money's personalized approach means users can find the support they need to do all the things they want to do: catching up with friends, delving into hobbies, traveling, or studying something new for personal development.
Offering a customized financial experience for each individual user, LINE Pocket Money will continue striving to be a lending service that complements individuals in this day and age.
How to use LINE Pocket Money
Open the LINE app and access the Wallet tab > Score. After agreeing to the terms of service, users can get their credit score calculated with the LINE Score service. After this, users can access LINE Pocket Money from within LINE Score and read about how to use the service, how to make repayments, and more, before submitting their loan application. Users who start the application process will then see their personalized interest rate and credit limit, which is determined by their LINE Score. Once the application is submitted, it will enter into "Screening" status, and the user will be notified of their results through LINE Pocket Money's LINE account.
After receiving this notification, users can then choose the maximum loan amount they wish to set, and agree to a basic contract to conclude their loan agreement. Once the loan agreement is finalized, the funds will be deposited into the user's LINE Pay account. All notifications and information thereafter will be sent to the user through the service's LINE account. Repayments are automatically withdrawn every month from the user's LINE Pay account or from their bank account.
Repayments can also be made at any time. Additionally, users must have a LINE Pay account in order to use LINE Pocket Money.
About LINE Pocket Money
・Product: Unsecured personal loans
・Available to: Any users who have registered a LINE Money account on LINE Pay, has friended LINE Pocket Money's LINE account, and meets the following criteria.
- Must be between 20–65 years of age and have an ongoing, stable source of income at the time of application, as well as fulfill other criteria stipulated by LINE. (Please note that applications will be screened.)
・Maximum loan amount: JPY 50,000 – JPY 1 million (in increments of JPY 50,000)
・Interest rate (real annual rate): 3% – 18%
・Loan amount: From JPY 1
・Late payment fee (real annual rate): 20%
・Collateral/Co-signer: Not required
・Purpose of loan: For living expenses (cannot be used for business purposes)
・Borrowing method: Loan amount is deposited into the borrower's LINE Pay account
・Repayment date: 16th or 26th of every month (or next business day if a bank holiday)
・Repayment system: Scheduled monthly repayments
・Repayment method: On the monthly repayment date, the amount will be withdrawn from the borrower's LINE Pay balance. If there are insufficient funds, the amount will then be withdrawn from the bank account the user has linked to LINE Pay.
・Loan term/number of installments: 1–36 months/1–36 installments (for loan agreements under JPY 300,000)
For loan agreements over JPY 300,000: 1–60 months/1–60 installments.
A loan repayment calculator can be found here
Note: Make sure to view the above link on either a smartphone or tablet.
Users must complete LINE Score registration before they can view this website,
About LINE Corporation
(1) Name: LINE Corporation
(2) Location of Head Office: JR Shinjuku Miraina Tower 23F, 4-1-6 Shinjuku, Shinjuku-ku, Tokyo
(3) Representative: Takeshi Idezawa, Representative Director, President, Chief Executive Officer
(4) Business: Provision and operation of the LINE messaging app and content and services made available on the LINE platform, in addition to other web service businesses and AI businesses
(5) Capital: JPY 96.199 billion (as of April 30, 2019)
(6) Established: September 4, 2000 (Changed trade name from NHN Japan Corporation to LINE Corporation on April 1, 2013)
About LINE Credit Corporation
(1) Name: LINE Credit Corporation
(2) Head Office: Sumitomo Fudosan Osaki Garden Tower 22F, 1-1-1 Nishishinagawa, Shinagawa-ku, Tokyo
(3) Representative: Mikihiko Yoshinaga, Representative Director
(4) Business: Provision and operation of scoring service for individuals, and an unsecured personal loan service
(5) Capital and Capital Reserve: JPY 5 billion (total)
(6) Shareholder Structure: LINE Financial Corporation (51%), Mizuho Bank Ltd. (34%), Orient Corporation (15%)
(7) Established: May 1, 2018
(8) Money Lending Business Registration Number: Governor of Tokyo (1) No. 31721
(9) For inquiries: 03-6670-3941 (Hours: 10 am – 6 pm (closed on weekends, public holidays, and New Year) 
Japan Financial Services Association: Member no. 006067
If you are having trouble making repayments or have any other concerns, you can contact the Japan Financial Services Association Consultation Center
TEL: 0570-051-051
Hours: 9 am – 5 pm weekdays (closed weekends, public holidays, and during New Year)

Make sure you understand the conditions of your loan, and borrow within your means.