Retail Loan: What is it, its types, benefits and more

A retail loan is a popular financing option that allows you to meet your needs stress-free. Getting such a loan expands your purchasing power. This way, you can make a small ticket or big-ticket purchases without worrying about funds at your disposal. 

Retail loan, meaning a loan offered to regular customers, offers you complete freedom of usage. From ACs to bikes, you can use it to finance anything at all and repay in affordable EMIs. There are many types of retail loans you can get access to, making it easy for you to choose one based on your specific requirements. 

Read on to learn what is retail loan, its types, benefits and more. 

What is a Retail Loan?

In the lending industry, individual customers are called retail customers. As such, a retail loan is any loan that satisfies the financial requirements of an individual. The terms of such loans depend on your repayment capacity and creditworthiness as well as the lender’s policy. 

Once you avail of this type of loan, you must pay interest depending on your tenure and loan amount. This way, a retail loan helps you make an immediate purchase when you are short on funds. 

Types of Retail Loans

To better understand what retail loans are, you must know some of their types, which include: 

Personal Loans

This is the most common and versatile of all retail loans. With a personal loan, you can finance any personal expense. Since it is an unsecured loan, you can get funds from top lenders like Fibe without pledging any asset.

Home Loans

Buying a home with a lump sum is extremely difficult, considering high property prices. With a home loan, you can buy your dream house with a secured loan. Moreover, you can pay back your loan easily with a tenure of 20 or 30 years. 

Vehicle Loans

A vehicle loan, also called an auto loan, is another secured loan that assists you in buying a car or a two-wheeler. Often, borrowers pay a down payment and use a loan to cover the remaining cost. 

Education Loans

This loan is for those aiming to get funds for higher education or upskilling. It covers the cost of tuition and other academic expenses. In some cases, you can start repaying the loan once your education is complete, with certain lenders providing a moratorium of up to a year after the end of the course.

Credit Card Loans

Credit cards offered by banks have a fixed pre-approved limit. Based on it, you can get an instant loan and repay it as per the terms. 

Consumer Durable Loans

This type of loan allows you to finance your purchases of electronics, furniture, household items, etc., with a short-term loan. Many lenders also have zero-interest offers for customers. 

Advantages of taking a Retail Loan

In addition to providing quick financing, retail loans have other advantages, as mentioned below:

• The loan application process is simple and straightforward
• Retail loans offer finance for a variety of purposes
• Many online lenders have a quick disbursal policy where you can get the amount within 24 hours
• With flexible repayment options, you can choose a tenure that suits your financial capacity
• Competitive interest rates keep the cost of borrowing low 

With this information, you can easily choose a retail loan that fits your requirements and apply online. Among all these types of loans, getting a personal loan is easy and quick. When you choose the Fibe Instant Personal Loan, you can get from ₹5,000 to ₹5 lakhs in just a few minutes. To apply, download the Fibe Personal Loan App or register on our website.

FAQs on Retail Loans

Which type of loan is a retail loan?

Retail loans refer to all loans that help you finance your requirements as an individual. Simply put, retail loans are all loans other than business loans.

What is an example of retail lending?

Some examples of retail loans include personal, education, travel, consumer durable, car and two-wheeler loans.  

Is a retail loan secured or unsecured?

A retail loan can be secured or unsecured, depending on the type of loan. Personal loans and consumer durable loans are usually unsecured retail loans. On the other hand, auto and home loans are secured loans, where the purchased vehicle or property acts as collateral. 

Is retail financing a personal loan?

Yes, personal loans are the most versatile type of retail financing. However, personal loans are just one type of retail financing and also include home loans, auto loans and more.