What is POS lending?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Despite all known shortcomings, express loans are becoming more and more popular. Buyers are so accustomed to the benefits of the financial market that they want to get a loan right at the point of purchase. This is what POS lending is based on.

What is this?

POS loan is nothing more than a loan for the purchase of goods. This is a loan that is issued and issued directly in the store, bypassing a visit to a banking organization. POS means "point of sale" and translates as "point of sale", which accurately reflects the meaning of this type of lending.

Cash will not be handed out at the same time. The bank, after completing the necessary documents for obtaining a loan, transfers the money to the store's account, and the buyer subsequently returns the loan. The bank has a cooperation agreement signed with the necessary outlets, which provides for the service of providing a POS loan to the borrower.

How is the process of obtaining this type of loan by the borrower? The bank places its representative in each partner store, who is directly involved in processing the loan. Also a POS managerlending also acts as a consultant on the service provided.

Sometimes banks use a third party, namely a loan broker, with whom an agreement is concluded. Thus, one broker at a point of sale can represent the interests of several banks when applying for a POS loan. In our country, POS lending services are provided by a narrow circle of banking institutions. Russian Standard Bank was the first to use this type of lending. Later, banks such as Home Credit, Alfa-Bank, Tinkoff and others joined it.

POS loan issuance

If you decide to use the service of such a loan, you will go through the registration procedure in the following steps:

• Choice of goods (please note that usually not all goods in the store can be bought on credit, so look carefully at the price tags).
• An application for a loan is made at the credit desk. To do this, be sure to present a passport and a second document of your choice from SNILS to a foreign passport.
• If the application is approved by the bank, the loan documentation is signed.

• The bank pays for the purchase.
• You repay the loan according to the schedule set by the bank. You can do this both directly in the store, and at the bank or payment terminals.

POS-lending "Tinkoff"

Buyers of online stores and travel agencies that accept payments through Yandex. Checkout,crediting is available right in the process of payment. The creditor bank is Tinkoff Bank (they also issue Yandex. Money cards). Credit limit - from three to one hundred thousand rubles.

For an online store, an additional agreement with the bank is not required, the payment on credit button can be found next to other payment methods.

An application for a loan is considered by the bank for two minutes, after which a representative will visit the client to sign a loan agreement. The next working day after signing the contract, the purchase is considered paid. In Yandex. Checkout, no commission is charged from buyers. The loan is repaid through Tinkoff Bank replenishment points or on the Yandex. Money website.

Sometimes the bank's condition for obtaining a loan is the first installment (from 10 percent). The amount for which a product or the quantity of goods is purchased may also be limited. On this subject, you can consult with a representative of the bank. The term of the loan can also be very different, from a couple of months to three years, as well as the interest rate.

Benefits

The benefits of POS lending are obvious to both the buyer and the other parties to the transaction:

• The buyer quickly acquires the necessary goods on credit, gradually repaying the loan taken from the bank. The process of obtaining a loan is simpler and much faster than in the case of a consumer loan taken directly from a bank. The goods can be obtained without a down payment and overpayments.
• The Bank is expanding its customer base with the help of POS lending. In addition to a loan, a new client can always be offered a credit card (so-called cross-selling), which increases the income of a banking organization.
• As for the store, it also receives a profit or a discount. With its help, the turnover and the amount of the check increase on average, since the buyer has the opportunity to buy more. The point of sale does not risk, as it receives money immediately upon the sale of goods, and the bank assumes all obligations. Among other things, the store can include a slow-moving item in the credit list, which will allow it to sell out faster.

Reverse side of POS loan

The POS lending market is getting more and more popular. But there is also a downside. The disadvantages mainly concern the buyer:

• Interest rates are often many times higher than the usual bank interest, under which consumer loans are issued. This is due to the fact that the bank assumes all the risks of non-repayment of the loan, which is invested in calculating the credit value. The client is assessed by a credit rating based on the borrower's credit history. The verification procedure is automated and is also called scoring.
• Unscrupulous bank representatives can add additional costs to the loan amount, such as accident insurance, without your knowledge.
• Credit limit by amount.
• Goods purchased on credit are pledged by the bank. This is done again to reduce the risks of the bank, so that in case of refusal to repay,he could partially return the money by selling the goods seized from the borrower. For example, cars are taken on bail (in this case, the bank keeps the original title deed).
• There is always the possibility that you will purchase an item that is overpriced in warehouses.
• The ability to buy something here and now without having the necessary amount of money often makes the buyer make purchases impulsively, without thinking properly.

Due to the quick and not very thorough verification of the buyer's ability to pay, POS lending banks take a big risk. When applying for a consumer loan, the borrower is checked much more carefully, up to the provision of a certificate from the place of work. The most unpleasant situation for the bank is the risk of fraud on the part of the buyer. No one can guarantee the bank that the application for a loan does not contain the details of a stolen passport. In this case, we can even talk about collusion with the participation of store employees

POS loan online

Sales on the Internet are also becoming more and more popular, becoming more perfect and developed. Now there are many ways to pay for purchases online. Previously, this was possible only by cash on delivery. Online stores today can offer to purchase goods on credit.

Buying goods in an online store with a credit loan is easy. Just click on the item "buy on credit" when placing an order. Next comes the application for a loan, after a fewminutes after sending, a response from the bank arrives. If the loan is approved, you receive the necessary goods and return the loan directly to the bank. Upon delivery, a loan agreement is signed.

So who needs a POS loan?

• If you lack a small amount to buy a certain product, then a loan is your option, as you can make a large amount as a down payment, and return the balance to the bank in small amounts.
• If the appliances in the house suddenly failed, and it is not possible to live without your favorite coffee maker or toaster.
• Saving up for a new thing is long and inconvenient. And buying on credit for a small amount is much faster.

Ranking of POS lending banks

The following are the top banks in terms of POS lending portfolio:

• HCF-Bank.
• Alfa Bank.
• Rusfinancebank.
• Credit Europe Bank.
• Renaissance Credit.
• Trust.
• Rosbank.
• MTS Bank.
• "Opening".
• "Oriental".