Retail Finance & Consumer Lending

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COURSE DESCRIPTION

Consumer lending also popularly known as retail finance and consumer loans is one the prominent functions of the retail banking industry. Various leading Public, Private and Foreign sector banks, Non-banking finance companies, Asset finance companies and Housing finance companies are engaged in this highly vibrant and fast growing segment of banking.

KEY PLAYERS

  • Public sector Banks -SBI, PNB, Bank of India, Canara Bank.
  • Private sector banks –  ICICI Bank, HDFC Bank, Axis Bank, Yes Bank, Kotak Bank.
  • NBFCs like Mahindra Finance, TATA Capital, Magma Fin Corp, Future Capital, Bajaj Finance.
  • New Small Finance Banks & MFIs.

JOB ROLES

  • Business Development
  • Relationship Management
  • Credit analysis, Portfolio Management
  • Operations & Customer Service
  • Collection and NPA Management

KEY SKILLS

Candidates get opportunities to work in various functions based on below skills:

  • Domain knowledge
  • Analytical skills
  • Customer centric attitude

LEARNING OUTCOMES

This course is specifically designed by the practitioners from the industry. It aims to give micro level know hows of the day to activities around job roles. On completion of the course learner are:

  • Well versed to explain retail lending products like home loan, car loan, and personal loan to a customer.
  • Able to complete the process and documentation thereof.
  • Able to identify a customer, source a deal and execute a loan proposal.
  • Able to coordinate with appraisal team for final sanctioning of a loan proposal.
  • Understand the macro perspective of the industry, organization and competition

 

COURSE OUTLINE

Chapter Topic Learning Hrs
General Concepts of Lending
  • Basics of Banking – Role and functions of a bank, NBFCs, Captive Finance Companies. Differentiation between a bank and NBFC.
  • Basics of Housing Finance, Automobile; Cars, Commercial vehicle & Two wheelers, Tractors & Farm equipment Industry, Credit Cards, Personal Loans Consumer goods loans.
  • Secured and Unsecured Lending, Time Value of Money, Concept of EMI.
  • Delivery Channels, Channel Management, Role of DSA, Dealer, Direct Team.
  • Incentives, Payouts, Special schemes on low IRR and High LTV.
  •  Financier – Manufacturer- Dealer relation.
  • The role of Sales, Credit, Operation, Collections and Customer service.
  • NPA and Recovery Management – PDD collection, Nonstarter resolution, 1st EMI collection, Soft collection, Hard Collection, customer follow up and CRM Process including collateral (PDD) collection mechanism & securitization.
  • Cross –Selling – Third Party Products, LI, GI, Mutual funds, Credit Shield and bundling with IRR / LTV.

 

12 hours
Introduction to Personal Loans
  • Overview: An overview of personal loans, its features, and benefits.
  • Product Types & Variants: Discussion into types of personal loans to meet various needs of the customer.
  • Eligibility & Documentation: The eligibility requirements to grant a loan, as well as the documentation needed.
  • Credit Evaluation Process: Discussion on general credit policy of banks for approval of PLs.
  • PL Terminology: Discussion on key terminologies related to personal loans such as CPV, TVR etc.
  • Challenges: You will learn about the key challenges that banks face in this product, such as overleveraging by a customer.

 

3 hours
Credit Cards
  • An overview of credit cards industry, players, market shares etc.
  • Credit Card Transaction System: Various parties involved in the credit card payment system, such as ‘Cardholder’, Merchandiser, VISA, MasterCard, Acquiring Bank etc.
  • Process Flow of a Credit Card Transaction: A detailed discussion on the various events that occur from the purchase, till the transaction is posted to cardholder’s account.
  • Features of Credit Card: How the credit card is issued as a loan product. Pre-approved cards, Co-branded cards, Stakes of various parties to the transaction, interest rate, credit rotation.
  • Critical Factors for Growth of Cards, and Credit Card Benefits: What makes the business grow; the product benefits to the customer.
  • Business Processes of Credit Card: Discussion on various business processes related to a credit card, such as Product Management, Sales, Sales Operations, etc.
  • How to make effective use of credit cards and service window to avoid any debt traps.

 

4 Hours
Vehicle Loans
  • Overview of Automobile industry in India, Types of Automobiles, Trends and Market share of various manufacturers, Distribution network, Changing Customer behaviors wrt purchase and ownership.
  • Types of Vehicle loans : Auto Loans, Commercial Vehicle loans, Two Wheeler Loans
  • Understanding various sub categories ; Cars, MUVs , SUVs, HCVs, MCVs, LCVs, SCVs
  • Understanding Usage-based categories – Personal Usage, Commercial Usage, FTUs, Fleets, Retail and Strategic Customer,  Load Carriers , Passenger carriers.
  • Market, Sourcing, Dealers, DSAs and Direct markets.
  • Vehicle  loan process : Risk profiling – Asset and Customer profiles, LTV, Tenure, EMI
  • Lending to Individuals and Firms – KYCs and Financials.
  • Lending Process from Application to KYC to credit appraisal to disbursement.
  • CIBIL and other rating checks and balances in sanctioning a loan.
  • Post-sanction process and modalities, Importance of RC/ Insurance, Invoicing and asset verification, Monitoring of a loan contract.
  • Understanding refinances & Used vehicle finance including assessment and blue book based pricing, risk and return. 

 

12 Hours
Housing Finance
  • Introduction: An overview of home loans, its features and various players in it.
  • Business Model: A discussion on the general business model of home loans and various elements constituting it.
  • Key Terms: Key terminologies related to home loans, such as Loan amortization, Capitalization of interest, Loan To Value ratio, Debt Burden Ratio (DBR), etc.
  • Home Loan Products: Classification of home loan products based on repayment methods, interest rates, and purpose/borrower’s need.
  • Other home loan products: Discussion on other home loan products, like ‘Refinanced Mortgages’, ‘Reverse Mortgages’, etc.
  • Eligibility & Documentation: The eligibility requirements to grant a loan, as well as the documentation needed.
  • Associated Products: Discussion on products associated with home loans, such as ‘Default/Repayment Insurance’ and ‘Content Insurance’ etc.

 

12 Hours
Cross Selling
  • Understanding Insurance ; General & Life ( LIGI) , Concept of Risk, Sum assured Premium calculation, liability covers, underwriting process, claim settlement and cashless facilities, Tax exemptions, and rebates.
  • Mutual Funds – Concept of MF, Types of MFs, Equity & Debt instruments, SIP, Magic of compounding, PV, FV, ROI, and MIP.
  • Understanding CASA, FDs, RDs, Gold and Direct equities, Derivatives,  D-mat & Trading accounts.

 

6 hours
Business Etiquettes
  • Business Dressing
  •  Grooming
  •  Meeting and Greeting customer
  • Listening skills
  • Mobile phone etiquettes
  • Product Knowledge and winning customer trust.
3 Hours

Course Features

  • Lectures 0
  • Quizzes 0
  • Duration 3 hours
  • Skill level All level
  • Language English
  • Students 273
  • Assessments Yes
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