Retail Lending is basically the practice of providing credits to individuals rather than institutions. And these credits are obtained from Retail Lenders, who lends money to individuals or retail customers. Some of the popular examples of retail lenders are Commercial Banks, credit unions, savings and loan institutions, mortgage bankers. Retail Lending has emerged as a large established business across the financial sector and brings a significant amount of growth and profit for the lending institutions. Popular lending Services include – personal loans, credit cards, home equity lines of credits, line of credit accounts, and mortgages.
WHY RETAIL LENDING?
With the growing competition in the financial sector, Banks are coming up with new strategies and improved services to meet the demands of the customers, to retain them. Here, retail lending emerges as a solution because it offers a higher return in quicker turnaround time with effective monitoring and fewer chances of bad loans. People primarily choose the option of retail loans in case of immediate need for credits. For example housing loans, educational loans, vehicle loans, etc. However, the interest rate has been deregulated by the apex bank (RBI) and now banks have the power to set an interest rate according to their needs and requirements.
HOW RETAIL LENDING WORKS:
Basically, retail lenders offer credits to retail customers. These customers may be looking for loan services from a bank/ other lending institutions/retail store credit cards. Another kind of credit is available for the retail customers that can be obtained from a Retailer. In this case, retailers must have a partnership with Retail Lending Institutions. The partners (institutions) are generally third-party credit providers. However in some cases, the retailers may also align with their merchant acquiring bank to issue credit cards to customers.
ABOUT PAYMONK:
Paymonk is a rapidly growing full-service Fintech Solutions organization that offers end to end solutions in Retail Lending Services. Paymonk offers customized loans that fit your business. Moreover, seamless and quick loans with flexible options to repay the credits help you to be ahead in business. Paymonk offers a wide range of loans that can be availed of by following a few simple steps. All one needs to do is fill up an online form, upload their PAN and Aadhar card, and the amount of loan required. After doing this, click the submit button. Moreover, one can pay back the amount in daily installments, according to their convenience. Paymonk’s retailers are located across the country and they are responsible for each stage of lending, starting from client, credit verification, loan origination to the recovery of the loan. Paymonk provides all-round solutions by providing quick, secure, and hassle-free services.
For more information, please visit: Retail Lending
