Post by nurnobisorker14 on Oct 29, 2024 23:22:36 GMT -8
Quite often, in various points of sale (retail stores, hypermarkets, etc.), you can meet specialists offering to get the necessary goods here and now by taking out a loan. This type of service is called POS lending. This material will consider what POS lending is, what advantages and disadvantages it provides, as well as a lot of other useful and relevant information.
Contents hide
1) What is POS credit?
2) Main features of POS lending
3) What is important to consider when applying for a POS loan?
3.1) Pitfalls of POS lending
4) How to apply for a POS loan
5) Is it possible to automatically repay the POS loan in case of product return?
6) Pros and cons of POS lending
6.1) Pros
6.2) Cons
7) Conclusion
What is POS credit
POS credit is one of the express loan options, which can be obtained without visiting the bank. You can apply for a loan at any physical retail outlet (store, hypermarket, sales outlet, etc.), as well as online (online store, marketplace, etc.).
POS lending can be used to purchase almost any goods. The most popular categories include: electronics, household appliances, furniture, jewelry, and more.
Financing is carried out at the expense of credit organizations, partners of retail outlets (MFI/bank). As a rule, financial institutions enter into cooperation bulk email campaigns agreements with large and medium-sized businesses, for this reason the service is mostly popular among retail chains, and small outlets are rare.
Several parties are involved in the scheme:
shop;
financial institution (bank or microfinance organization);
client.
Retail outlets, thanks to accessible purchasing conditions, benefit from a large number of potential customers. The number of sales, including expensive items that are not in demand among buyers, increases.
Whether there is a benefit for consumers from this type of lending is a controversial issue. To get an answer to it, you should carefully study each specific option, leave applications and compare the conditions. Below we will consider the main advantages and disadvantages of the offer, but in general we can conclude that this service is a good option for buyers who want to get the product here and now. At the same time, most often such purchases are accompanied by significant overpayments, which does not always scare borrowers.
Try paying in installments
First payment only after 30 days
Find out the limit
Key Features of POS Lending
Banks that work with such a direction as POS-lending note its high risks. Among all other areas of activity, this segment stands out for the largest amount of overdue debts. For the most part, this is due to simpler identification of borrowers.
The transaction is concluded directly at the point of sale, which does not allow the bank to obtain full information about the client and evaluate it. Thus, even insolvent persons can apply for the product. This type of lending is also characterized by the following distinctive features:
higher interest rates;
high chances of approval;
standard terms similar to those for “classic” consumer lending;
the ability to choose a financial institution – the purchase of the same product can be processed in several banking institutions at once.
Features of POS lending include higher rates compared to other types of lending. For example, a rate of 30% is quite acceptable. Stores cooperate with several financial institutions available on the market, which allows them to offer borrowers various conditions.
The client reserves the right to repay their debt early. To do this, simply contact the bank/MFI with which the agreement was concluded. All conditions for early repayment are spelled out in the agreement concluded between the two parties. After making all payments, it is important to request a certificate of loan repayment.
What is important to consider when applying for a POS loan?
Before using POS lending, there are a few important things to consider:
interest rate (per annum) and total cost of the loan/credit;
payment schedule (it is important that it is acceptable to you);
available loan repayment options, number and location of ATMs and branches of the financial institution;
warranty for the purchased product;
the period of receipt of funds from the point of sale to the financial institution in the event of termination of the contract;
availability of other offers for financing purchases, for example, installments.
Contents hide
1) What is POS credit?
2) Main features of POS lending
3) What is important to consider when applying for a POS loan?
3.1) Pitfalls of POS lending
4) How to apply for a POS loan
5) Is it possible to automatically repay the POS loan in case of product return?
6) Pros and cons of POS lending
6.1) Pros
6.2) Cons
7) Conclusion
What is POS credit
POS credit is one of the express loan options, which can be obtained without visiting the bank. You can apply for a loan at any physical retail outlet (store, hypermarket, sales outlet, etc.), as well as online (online store, marketplace, etc.).
POS lending can be used to purchase almost any goods. The most popular categories include: electronics, household appliances, furniture, jewelry, and more.
Financing is carried out at the expense of credit organizations, partners of retail outlets (MFI/bank). As a rule, financial institutions enter into cooperation bulk email campaigns agreements with large and medium-sized businesses, for this reason the service is mostly popular among retail chains, and small outlets are rare.
Several parties are involved in the scheme:
shop;
financial institution (bank or microfinance organization);
client.
Retail outlets, thanks to accessible purchasing conditions, benefit from a large number of potential customers. The number of sales, including expensive items that are not in demand among buyers, increases.
Whether there is a benefit for consumers from this type of lending is a controversial issue. To get an answer to it, you should carefully study each specific option, leave applications and compare the conditions. Below we will consider the main advantages and disadvantages of the offer, but in general we can conclude that this service is a good option for buyers who want to get the product here and now. At the same time, most often such purchases are accompanied by significant overpayments, which does not always scare borrowers.
Try paying in installments
First payment only after 30 days
Find out the limit
Key Features of POS Lending
Banks that work with such a direction as POS-lending note its high risks. Among all other areas of activity, this segment stands out for the largest amount of overdue debts. For the most part, this is due to simpler identification of borrowers.
The transaction is concluded directly at the point of sale, which does not allow the bank to obtain full information about the client and evaluate it. Thus, even insolvent persons can apply for the product. This type of lending is also characterized by the following distinctive features:
higher interest rates;
high chances of approval;
standard terms similar to those for “classic” consumer lending;
the ability to choose a financial institution – the purchase of the same product can be processed in several banking institutions at once.
Features of POS lending include higher rates compared to other types of lending. For example, a rate of 30% is quite acceptable. Stores cooperate with several financial institutions available on the market, which allows them to offer borrowers various conditions.
The client reserves the right to repay their debt early. To do this, simply contact the bank/MFI with which the agreement was concluded. All conditions for early repayment are spelled out in the agreement concluded between the two parties. After making all payments, it is important to request a certificate of loan repayment.
What is important to consider when applying for a POS loan?
Before using POS lending, there are a few important things to consider:
interest rate (per annum) and total cost of the loan/credit;
payment schedule (it is important that it is acceptable to you);
available loan repayment options, number and location of ATMs and branches of the financial institution;
warranty for the purchased product;
the period of receipt of funds from the point of sale to the financial institution in the event of termination of the contract;
availability of other offers for financing purchases, for example, installments.