Understanding Retail Loans: A Simple Guide

October 3, 2023


Retail serve as a financial solution who require funds for personal needs, differing from the financial aids provided to corporate companies. These loans are broadly categorized into two types: Cash Loans and Shopping Loans.

Cash Loans

Cash loans assist individuals in times of immediate financial need by depositing money directly into their bank accounts. This money can be utilized for various purposes immediately after issuance. However, it is essential to note that legal requirements in the banking sector can frequently change. For instance, the Banking Inspection Board (BDDK) recently mandated that all banks restrict customers from purchasing cryptocurrencies, stakes, and foreign currencies using cash loans. Subsequently, customers must now sign a commitment letter agreeing to these terms before obtaining a cash loan.

Interest Rates & Conditions

Interest rates on cash loans may vary depending on individual financial statuses and the accuracy and timeliness of their bill payments. Maintaining a high banking score, achieved by timely payments of credit installments, card debts, and utility bills, can facilitate better interest rates. Moreover, rates can differ based on the issuance channel; some banks’ mobile applications might offer more favorable rates compared to their call centers.

Shopping Loans

Shopping loans, on the other hand, are designated for purchasing products through online shopping platforms or physical stores, with the funds transferred directly to the store’s account by the bank. It’s crucial to note that these loans cannot be used as cash. Many modern online platforms and stores have integrated with bank credit systems, offering two primary integration methods:

  • API Integration

With API integration, companies can design their screens by integrating web services provided by the bank, giving them the flexibility to choose the information or data displayed to the customer. However, this method does require companies to understand and implement credit business logic on their platforms, necessitating dedicated business analyst resources.

  • Web View Integration

Web view integration enables companies to incorporate end-to-end solutions from banks. Upon choosing payment with credit, customers are directed to the bank’s integrated screens to complete the loan process within the web view. Once successfully completed, the bank notifies the company that the loan has been issued, allowing customers to proceed with their purchases.


Retail loans, whether in the form of cash or shopping loans, have evolved to cater to the varied needs of individuals, offering convenience and flexibility. However, it is imperative for individuals to understand the terms, conditions, and legal implications associated with them to make informed decisions.

Remember, the ever-evolving banking laws require customers and companies to stay informed about the latest amendments and adjustments in financial regulations to avoid unforeseen complications.

Author: Deniz Kurt


Consultancy Core Business Loan Retail Loan