The Pros and Cons of Indirect Lending

By Preston Packer |



Indirect lending has grown substantially over the past several years, especially with the auto lending market. While auto loans grew 18% between 2011 and 2016, other loans grew at just 10%. Today, auto loans comprise 35% of most credit union’s portfolios, however, we’re starting to see a shift where credit unions are backing off of indirect lending programs. It has become clear to the credit union industry that the benefits do not necessarily outweigh the drawbacks. Here are some pros and even more cons of indirect lending:

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