A Retail loan is generally provided to an individual by a certified financial institution, a commercial bank or a credit union to purchase property, vehicles or other assets such as essential electronics, etc. … One of the most common types of Retail loans is a Housing Loan.
Considering this, what are the loan products?
- Home loan. Home loans are a secured mode of finance, that give you the funds to buy or build the home of your choice. …
- Loan against property (LAP) …
- Loans against insurance policies. …
- Gold loans. …
- Loans against mutual funds and shares. …
- Loans against fixed deposits. …
- Personal loan. …
- Short-term business loans.
Simply so, what are the 4 types of loans?
- Unsecured personal loans. Personal loans are used for a variety of reasons, from paying for wedding expenses to consolidating debt. …
- Secured personal loans. …
- Payday loans. …
- Title loans. …
- Pawn shop loans. …
- Payday alternative loans. …
- Home equity loans. …
- Credit card cash advances.
Why do banks prefer retail loans?
In fact, lending to the retail sector makes immense sense for the banks because of the low bad loans rate. The overall bad loans rate on lending to retail has stayed at around 2% for a while now. … This is a substantial jump but compare this to the 22.8% bad loans rate (and growing) for lending to industry.
Which type of loan is cheapest?
To know
| Car Loan Lender | Interest Rate (in per annum) |
|---|---|
| ICICI Bank | 9.30% – 12.85% |
| HDFC Bank | 7.70% – 13.55% |
| Bank of India | 7.35% – 7.95% |
| IDBI Bank | 8.10% – 8.70% |
What are the 3 types of mortgages?
8 Types of Mortgage Loans for Buyers and Refinancers
- 30-year fixed-rate mortgage. The 30-year fixed-rate mortgage is a home loan with an interest rate that’s set for the entire 30-year term. …
- 15-year fixed-rate mortgage. …
- Adjustable-rate mortgage. …
- FHA mortgage. …
- VA mortgage. …
- USDA mortgage. …
- Jumbo mortgage. …
- Interest-only mortgage.
What are the 4 types of loans for homes?
Here are four types of mortgage loans for home buyers today: fixed rate, FHA mortgages, VA mortgages and interest-only loans.
What is retail banking example?
Banking services which are regarded as retail include provision of savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards. … It may also refer to a division or department of a bank which deals with individual customers.
Is a bank considered retail?
Retail banking, also known as consumer banking, is the provision of services by a bank to the general public, rather than to companies, corporations or other banks, which are often described as wholesale banking. Retail banking is also distinguished from investment banking or commercial banking.
How do I apply for a retail loan?
The step by step application process goes as follows:
- Choose which kind of advance is directly suitable for you.
- Get Your Financial record. Credit Scores and FICO assessment Checked by an accountant.
- Visit Your Nearby Financial assessment and SBDC Offices.
- Online Application.
- Upload Documents.
- Loan Approval and Disbursal.
What is the cheapest way to borrow money?
Depending on your needs the cheapest way to borrow money will most likely be a personal loan or a credit card. These aren’t the only ways of getting hold of money, however. You can also use a bank current account overdraft or borrow against the value of your house.
What is a simple loan?
Simple interest applies mostly to short-term loans, such as personal loans. A simple-interest mortgage charges daily interest instead of monthly interest. When the mortgage payment is made, it is first applied to the interest owed. Any money that’s left over is applied to the principal.
What is the monthly payment on a 10000 loan?
In another scenario, the $10,000
| Your payments on a $10,000 personal loan | ||
|---|---|---|
| Monthly payments | $201 | $379 |
| Interest paid | $2,060 | $12,712 |