What Is Retail Lending?

Retail loans are loans made by commercial banks to individuals. It mainly includes consumer loans issued to individual consumers to purchase durable consumer goods or to pay various fees; loans to individuals (excluding brokers and securities dealers) to purchase or store securities; Real estate loans for the purchase of real estate such as homes. Retail loans are generally mortgaged.

Retail loan

Retail loans are loans made by commercial banks to individuals. It mainly includes consumer loans issued to individual consumers for the purchase of durable consumer goods or payment of various fees; loans to individuals (excluding brokers and securities dealers) for the purchase or storage of securities loans; Real estate loans for the purchase of real estate such as homes. Retail loans are generally mortgaged.
Chinese name
Retail loan
Foreign name
Retail loans
Object
personal
Main body
commercial Bank
Wholesale loan
Wholesale loans and retail loans are differentiated according to the loan object. Wholesale loans are targeted at large industrial and commercial enterprises and institutions, while retail loans are targeted at consumer individuals and small private enterprises. Wholesale loans can be mortgage or unsecured, and the term can be short, medium or long term. For wholesale loans with large amounts and long maturities, they face greater interest rate risks than retail loans, and therefore use variable interest rates more. There are also short-term, medium-term or long-term retail loans. As most of the retail loans are short-term and medium-term, the long-term is relatively small, so most of them use mortgage loans and fixed interest rates. In recent years, some unsecured floating-rate personal consumption loans have also been developed.

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