The total loan to customers is comprised of the following:
| As at December 31, | ||||||||
| 2016 | 2017 | |||||||
| RMB’000 | RMB’000 | |||||||
| Loan receivables at amortized cost | 697,074 | 818,114 | ||||||
| Less: impairment loss allowance | ||||||||
| Collectively assessed | (9,521 | ) | (11,684 | ) | ||||
| Individually assessed | (12,212 | ) | (15,040 | ) | ||||
| (21,733 | ) | (26,724 | ) | |||||
| Loan receivables , net | 675,341 | 791,390 | ||||||
The Group originates loans to customers located primarily in Wuhan City, Hubei Province. This geographic concentration of credit exposes the Group to a higher degree of risk associated with this economic region.
The following table presents loans and advances to customers at amortized cost by type of loans:
| As of December 31, 2016 | As of December 31, 2017 | |||||||||||||||||||||||
Gross carrying amount |
Expected credit loss allowance | Carrying amount | Gross carrying amount |
Expected credit loss allowance | Carrying amount | |||||||||||||||||||
| RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | |||||||||||||||||||
| Business loans | 279,219 | (6,927 | ) | 272,292 | 307,579 | (8,355 | ) | 299,224 | ||||||||||||||||
| Personal loans | 417,855 | (14,806 | ) | 403,049 | 510,535 | (18,369 | ) | 492,166 | ||||||||||||||||
| Total | 697,074 | (21,733 | ) | 675,341 | 818,114 | (26,724 | ) | 791,390 | ||||||||||||||||