Q.What are the various types of Retail Loans? Explain.

Retail loans are loans granted by banks to individuals for personal, family or household purposes. The common types are home loans, vehicle loans, education loans, personal loans, consumer-durable loans, gold loans and loans against property/securities.

Meaning

Retail loans are advances made by commercial banks to individual borrowers (not businesses) to finance personal needs. They are usually repaid in equated monthly instalments (EMIs).

Types of Retail Loans

1. Housing (home) loan - To buy, build or renovate a house, repaid over a long period against the property as security.
2. Vehicle / auto loan - To purchase a two-wheeler or car, with the vehicle itself as security.
3. Education loan - To meet the cost of higher studies in India or abroad.
4. Personal loan - An unsecured loan for personal needs such as marriage, travel or medical expenses.
5. Consumer-durable loan - To buy household goods like refrigerators, televisions and laptops. …