Consumer lending (also called retail lending) refers to making a wide range of
securedA secured loan is a loan in which the borrower pledges some asset as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan...
and
unsecured- Definition :An unsecured loan is a loan that is not backed by collateral. Also known as a signature loan or personal loan.Unsecured loans are based solely upon the borrower's credit rating. As a result, they are often much more difficult to get than a secured loan, which also factors in the...
loansA loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
to consumers for consumable items such as a car,
boatA boat is a watercraft of modest size designed to float or plane, to provide passage across water. Usually this water will be inland or in protected coastal areas. However, boats such as the whaleboat were designed to be operated from a ship in an offshore environment. In naval terms, a boat is...
,
manufactured homeMobile homes or static caravans are prefabricated homes built in factories, rather than on site, and then taken to the place where they will be occupied. They are usually transported by tractor-trailers over public roads to sites which are often in rural areas or high-density developments. In some...
,
home equity loanA home equity loan is a type of loan in which the borrower uses the equity in their home as collateral. These loans are sometimes useful to help finance major home repairs, medical bills or college education...
,
home equity line of creditA home equity line of credit is a loan in which the lender agrees to lend a maximum amount within an agreed period , where the collateral is the borrower's equity in his/her house...
, signature loan,
signature line of creditA signature line of credit is a revolving line of credit that is not backed by collateral; i.e., the sole criterion for the decision to grant the loan and establish the terms thereof is an assessment of the customer's credit rating. Also known as an "unsecured line of credit". Category:Finance...
,
recreational vehicleIn North America the term recreational vehicle and its acronym, RV, are generally used to refer to a vehicle equipped with living space and amenities found in a home; they are sometimes called motorhomes. A recreational vehicle normally includes a kitchen, a bathroom, a bedroom and a living room...
, or share or
certificate of depositA certificate of deposit or CD is a time deposit, a financial product commonly offered to consumers by banks, thrift institutions, and credit unions....
or Stocks and Mutual Funds secured loans.
Consumer lending does not include
mortgageA mortgage is the transfer of an interest in property to a lender as a security for a debt - usually a loan of money. While a mortgage in itself is not a debt, it is the lender's security for a debt...
loans, typically used for home purchases, which follow some different regulations than consumer loans. Also, consumer loans are different from commercial loans, which can be calculated on a daily basis, rather than 12 monthly payments (such as with the U.S. Federal calendar), and include interest for leap day (as an extra day of the year), such as in Actual/366 loan calculations.