What is Retail Lending?
Important banking qna for banking aspirants, which is helpful in banking exam.
- It entails servicing of a large number of accounts requiring substantial manpower, but its promotes the consumer and retail industry in a big way.
- Consumerism gets a huge boost as the aspirations of the people for a better lifestyle is achieved through personal loans, educational loans, auto loans, consumption loans, housing loans, credit cards receivables.
- These loans are repaid over the duration of the loan period agreed at the time of sanction/disbursement of the loan amount.
- The interest charged is higher in case of unsecured loans as the element of risk is comparatively more.
- The bank by charging higher interest rate tries to earn the maximum income from these accounts as likelihood of default is higher.