💡 Did you know that retail loans form a significant portion of a bank’s lending portfolio? If you’re a banker or preparing for the JAIIB exam, understanding Retail Asset Products is crucial for your success.
In this session, we cover:
📚 JAIIB Study Resources 📚
👉 Check Here
👉 Check Here
👉 Check Here
👉 Get Tests Here
👉 Check Here
- Home Loans & Home Improvement Loans
- Prime Minister Awas Yojana (PMAY)
- Auto & Vehicle Loans
- Personal Loans & their key features
- Education Loans & eligibility criteria
- Loan processing models in banks
Who should watch this?
- JAIIB aspirants preparing for the Retail Banking module
- Bankers looking to enhance their knowledge of loan products
- Anyone curious about retail asset financing in banking
🎯 Before we dive in, watch this video for a complete breakdown:
Understanding Retail Asset Products in Detail
Retail asset products are a crucial aspect of banking that cater to individual borrowers rather than businesses. These loans help people purchase homes, vehicles, and even finance their education. Understanding these loan types is essential for banking professionals, as they play a major role in a bank’s revenue.
Key Topics Covered in the Video
🏡 Home Loans & Home Improvement Loans
- Purpose: Financing for purchasing a house or upgrading an existing property
- Eligibility: Salaried employees, self-employed individuals, and cooperative society members
- Loan Amount: Varies from bank to bank
- Security: Mortgage of the renovated/constructed property
- Margin Requirements: Generally 20-50% of project cost
- Moratorium Period: Up to 3 months before EMI starts
- Disbursement: Lump sum or staggered payments based on work progress
Home loans are one of the most popular retail loans. Banks assess an individual’s income, credit score, and property value before granting the loan. Additionally, some banks offer lower interest rates for first-time homebuyers.
🏠 Prime Minister Awas Yojana (PMAY) – Making Housing Affordable
- Objective: To provide affordable housing for all
- Eligibility: Low & middle-income groups (LIG, MIG-1, MIG-2)
- Interest Subsidy: Up to 6.5% depending on income category
- Loan Tenure: Maximum 20 years
- Maximum Loan Amount Covered: Up to ₹12 lakh
This scheme has helped many Indian citizens buy their first home. It provides financial assistance to those who may not have the means to afford high-interest home loans.
🚗 Auto & Vehicle Loans
- Purpose: Financing for new or used vehicles
- Eligibility: Salaried individuals, self-employed professionals, and businesses
- Loan Tenure: Up to 7 years for new cars, 5-6 years for two-wheelers
With rising demand for personal vehicles, banks have made car loans more accessible. Interest rates vary depending on the borrower’s creditworthiness.
[FREE EPDF] JAIIB Module B Chapter 8 | Retail Liability Products
💳 Personal Loans – The Unsecured Borrowing Option
Personal loans provide financial relief during emergencies. These loans can be used for various purposes without any collateral.
🎓 Education Loans – Funding Higher Studies
Education loans help students finance their higher studies. The repayment starts after the moratorium period, which includes the course duration plus one year.
Conclusion
Understanding Retail Asset Products is crucial for JAIIB aspirants and banking professionals. We covered key loan products such as Home Loans, Auto Loans, Personal Loans, and Education Loans, along with loan processing models.
📥 Download the Complete PDF Guide Here ⬇️
📢 Don’t forget to like, share & subscribe!
