It's is a insurance ppt which covers consumer finance

1. ConsumerFinance:Secured&
UnsecuredLoan

2. GroupMembers
• PushkarSingh(PGP25088)
• Aditya Singh(PGP25034)
• AamirKhan(PGP25003)
• Gautam(PGP25134)
• AkshayPratapSingh(PGP25041)
• SiddhiJain(PGP25357)
• Ansari mohdhusain(PGP25067)

3. Consumer
Finance
Consumer finance refers to the
borrowing, saving, and. investment
choices that people (i.e., households)
make over. time.
These financial decisions can be complex
and can. affect financial well-being both
now and in the future.
Consumer financing’ covers all point of
sale finance, including credit cards and
installment loans.
Businesses of all sizes benefit greatly
from offering consumer financing
Also referred to as ‘Customer financing’

4. A secured loan is a type of loan that's backed by
collateral, or assets you own. When you take out a
secured loan, you're putting your collateral on the line.
If you can't repay the loan, the lender can take your
collateral to recoup their loss.
The most common types of secured loans
are mortgages and car loans, and in the case of these
loans, the collateral is your home or car. But really,
collateral can be any kind of financial asset you own.
And if you don't pay back your loan, the bank can seize
your collateral as payment.
WhatisSecureLoan?

5. TypesofSecured
Loan
• Loan against property
• Auto Loan
• Invoices
• Medical equipment
Financing
• Working Capital Loan

6. Property Conditions:-
Property condition assessments are due diligence
projects associated with commercial real estate.
Commercial property and building inspections
are important for clients seeking to know the
condition of a property or real estate they may be
purchasing, leasing, financing or simply
maintaining.
Factors affecting
Secured loan
Debt-to-income ratio:-
Your debt-to-income ratio (DTI) is all your monthly debt
payments divided by your gross monthly income. This
number is one way lenders measure your ability to manage
the monthly payments to repay the money you plan to
borrow. Different loan products and lenders will have
different DTI limits

7. Additional upfront fees
Longer application process
Asset valuation required
Risk of losing assets
Weighing the Pros & cons of a Secured loan:-
Lower interest rates
Longer repayment
Access higher loan amounts
Easier qualifying criteria

8. An unsecured loan is a loan that doesn't
require any type of collateral. Instead of
relying on a borrower's assets as security,
lenders approve unsecured loans based
on a borrower's creditworthiness.
Example: personal loans, student loans,
and credit cards.
WhatisUnsecuredLoan?

9. TypesofUnecured
Loan
Term loans
A term loan is a personal loan where the
borrower receives a lump sum amount, and
the borrower repays the loan in
predetermined fixed installments .
Education loans
An education loan is a loan that a student can avail
from banks or NBFCs to fund their education.
Bridge loan
Bridge loan. Bridge loans have been designed to
take care of short-duration fund requirements.
The tenure of bridge loans is generally less than
one year.
Personal loans
Personal loans are one of the most common types
of unsecured loans available in India.

10. ● Age
Before availing of a personal loan, you have to consider the
foremost criterion that affects personal loan eligibility, which is
your age. Age is an important factor since it shows your
financial steadiness and earnings to the lender.
● Monthly income
Before issuing the loan, your lender will determine whether
you have sufficient monthly income or not. In this way, they
will get an idea if you can repay the loan within the mentioned
time. Your repaying capability has a direct relation with your
income and it denotes an important part of your financial
profile.
● Credit history
Personal loans are unsecured loans, meaning they are free of
any security or asset backing. As a result, lenders take the help
of credit scores to know your creditworthiness. These scores
also affect personal loan eligibility.
● Tenure
Remember that the repayment period is also another
important factor that affects the eligibility for the personal
loan.
Factoraffecting
UnsecuredLoan

11. Loan amount is smaller
Eligibility Criteria can be demanding
Higher interest rate
Shorter Tenure
Weighing the Pros & cons of a Unecured loan:-
Easy process and Quick Disbursals
No risk for loosing collateral
Multipurpose loan

12. Secured loans are a better option if you
have a lower credit score but still want a
favorable interest rate. Unsecured loans
are a good option if you don't want to
risk your assets and you are willing to
take on higher interest rates for the loan.
The better option is different for each
business
Whichoneisrightforyour
Business?