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Unit - 7 : Important Retail Asset Products
Important Retail Asset Products are :
Home Loans (Home Loans, Home improvement loans, Home decor loans)
Auto Loans
Personal Loans
Credit Card
Other Personal Loans
Personal Loans can be grouped under two segments:
(i) Big Ticket Personal Loans and
(ii) Small Ticket Personal Loans.
Big Ticket Personal Loans are loans in which the ticket size (amount of loan) is above Rs.50,000/- and an average ticket size of about Rs. 1,25,000/-.
Small Ticket Personal Loans are loans less than Rs.50,000/ - and an average ticket size of Rs.23,000/-.
Small Ticket Personal Loans are mostly extended by Non Banking Financial Companies (NBFCs)
Banks focus mainly on Big Ticket Personal Loans.
Banks adopt different models for processing of retail loans. The important models of retail loans processing are explained below:
Stand Alone Model
Stand alone model for retail loan processing refers to processing of retail loans independently at the branch level, based on the discretionary powers
Centralised Model
Centralised Model for retail loans processing refers to processing of loans at a centralised place depending upon the geography of branches. Banks adopt different centralised models for processing of retail loans. Some of the names, Banks give to these retail loans processing centres are :
(i) Retail Loan Factory
(ii) Retail Loan Hub
(iii) Retail Loan Processing Centres
(iv) Retail Asset Processing Centres
(v) Retail Loan Branches
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