Contrary to all known shortcomings, express loans are becoming more and more popular. Buyers are so used to the benefits of the financial market that they want to get a loan right at the place of purchase. This is what POS lending is based on.
What it is?
A POS loan is nothing more than a loan to buy goods. This is a loan that is drawn up 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 at the same time is not issued. After drawing up the necessary documents for obtaining a loan, the bank transfers money to the store’s account, and the buyer subsequently returns the loan. The bank has a cooperation agreement signed with the necessary trading points, which provides for the provision of a POS loan to a borrower.
How is the process of obtaining this type of loan by the borrower? The Bank places a representative in each partner store, which is directly involved in loan processing. The POS lending manager also acts as a consultant for the service provided.
Sometimes banks use a third party, namely a loan broker with whom a contract 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. The first to use this type of lending was the Russian Standard Bank. Later, such banks as Home Credit, Alfa Bank, Tinkoff and others joined him.
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:
- Product selection (it is worth paying attention that usually not all products in the store can be bought on credit, so look carefully at the price tags).
- A loan application is issued at the credit counter. To do this, it is necessary 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, loan documentation is signed.
- The bank pays for the purchase.
- You repay the loan according to the schedule established by the bank. You can do this either directly in the store, or in a bank or payment terminals.
POS-lending to Tinkoff
Buyers of online stores and travel agencies that accept payments through Yandex.Cash, are available loans directly in the payment process. Tinkoff Bank acts as a creditor bank (Yandex.Money cards are issued to it). Credit limit - from three to one hundred thousand rubles.
For an online store, the conclusion of an additional contract with the bank is not required, the credit payment button can be found next to other payment methods.
An application for a loan by a bank is considered for two minutes, after which a representative will visit the client to sign a loan agreement. The next business day after signing the contract, the purchase is considered paid. At Yandex.Cash, no commission is charged from buyers. Repayment of the loan is carried out through the recharge points of Tinkoff Bank or on the Yandex.Money website.
Sometimes a bank’s condition for obtaining a loan is to make a down payment (from 10 percent). The amount by which a product or quantity of goods is purchased may also be limited. You can consult with a bank representative on this topic. The loan term can also be very different, from a couple of months to three years, as well as the interest rate.
Benefits
The advantages of POS lending are obvious both for the buyer and for the rest of 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 significantly faster than in the case of a consumer loan taken directly from the bank. Goods can be received without down payment and overpayments.
- The Bank is expanding its customer base with POS lending. You can always offer a new client, in addition to credit, a credit card (so-called cross-sales), which increases the income of a banking organization.
- As for the store, then it receives a profit or discount. With its help, the turnover and the amount of the check increase on average, as the buyer has the opportunity to buy more. The outlet does not take risks, as it receives money immediately when selling the goods, and the bank takes all the obligations. Among other things, the store may include slow-moving goods in the list of credit, which will allow you to quickly sell it.
Reverse side of a POS loan
The POS lending market is becoming increasingly popular. But there is a downside. The main disadvantages relate to the buyer:
- Interest rates are often several times higher than ordinary bank interest rates for which consumer loans are issued . This is due to the fact that the bank assumes all risks of default on the loan, which is invested in calculating the credit value. The client is evaluated by credit rating based on the credit history of the borrower. The verification procedure is automated and is also called scoring.
- Unscrupulous bank representatives may, without your knowledge, add additional expenses to the loan amount, for example, accident insurance.
- Credit limits on the 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 TCP).
- There is always the possibility that you will purchase goods that are in stock at overpriced prices.
- The ability to purchase goods here and now, without the necessary amount of money, often forces the buyer to make purchases impulsively, without thinking properly.
- Due to the quick and not very thorough verification of the buyer's solvency, POS lending banks are at great risk. When applying for a consumer loan, the borrower is checked much more thoroughly, up to providing a certificate of employment. 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 loan application does not contain the information of the stolen passport. In this case, we can even talk about conspiracy with the participation of store employees.
POS-credit on the Internet
Sales on the Internet are also becoming increasingly popular, becoming more sophisticated and developed. Now there are many ways to pay for purchases online. Previously, this was only possible by cash on delivery. Online stores today can offer to buy goods on credit.
Buying goods in an online store with a loan is easy. Just click on the item "buy on credit" when placing an order. Then the application for a loan takes place, a few minutes after sending a response comes from the bank. If the loan is approved, you receive the necessary goods and repay the loan directly to the bank. Upon delivery, a loan agreement is signed.
So who needs a POS loan?
- If you don’t have a small amount to buy a certain product, then a loan is your option, since you can pay a large amount as a down payment and return the balance to the bank in small amounts.
- If the appliances in the house suddenly fail, 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 to buy on credit for a small amount is much faster.
Rating of POS-lending banks
Below are the banks that occupy leading positions in terms of the volume of POS lending portfolio:
- HCF-Bank.
- "Alfa Bank".
- Rusfinansbank.
- "Credit Europe Bank".
- "Renaissance Credit".
- "Trust".
- Rosbank.
- MTS Bank.
- "Opening".
- "Oriental".