Fundamentals of Consumer Lending

Description: Fundamentals of Consumer Lending covers the basics of consumer credit including terminology, categories of credit, and credit worthiness. It explains the application process and the actions required to ensure bank compliance with regulations. The exercises in this course provide practice for a higher comfort level with consumer credit and increased credibility when interacting with clients who apply for consumer credit.

Audience: Any bank personnel with little or no experience in consumer lending.

Learning Objectives: After completing this course, students will be able to:

  • Describe consumer credit basics including examples of consumer credit, the consumer credit operations of a bank, and the credit application process
  • Define basic categories of consumer credit and terminology
  • Explain how banks make money from loans including which rate types banks use, which factors determine loan pricing, and which loan cost categories affect loan profitability
  • Describe the credit evaluation and decision-making systems, namely the Five C’s of Credit and credit scoring
  • Summarize the impact of bank regulations upon the credit application process