ORIGINAL RESEARCH Asia-Pacific Financial Markets https://doi.org/10.1007/s10690-023-09419-6 Abstract Certain predominant Banks astride across India stayed esoterically stable while graphing nascent opportunities in retail banking sectors to intensify their fnancial values. And concomitantly, Money lending facilities i.e., Consumer Loan services are one of those oferings which are supposed to meet the customer’s needs and requirements. But due to a lack of proper ‘customer education’, customers are made to purchase third-party fnancial products like mutual funds or insurance policies as mandatory at the time of disbursement of loans by the bank ofcials, which results in fnancial losses to the customers. The study is carried out to explore vari- ous loan facilities provided by major banks so that customers can avail of the loan facilities as per their requirements. We have studied and surveyed all consumer loan services available, and on the basis of certain parameters such as Interest Rates, Equated Monthly Installment (EMI), Processing Fee, Pre- Payment Charges, Charges for Late Payments of EMI, Cheques/ Electronic Clearing Service (ECS) Return Charges, Mandate Life Insurance Policies, etc. The study concluded that customers should be exposed to all types of terms and conditions regarding third- party fnancial products at the time of loan disbursement so that every customer can be protected from mis-selling third-party fnancial products. Therefore, this study will enhance the literature towards’ customer education’ and will spread awareness of certain terms and conditions to the customer at the time of disbursement of loans in their account. Keywords Consumer Loan services · Third-party fnancial products · Banking Ombudsman · Retail banking · Customer education Accepted: 24 July 2023 © The Author(s), under exclusive licence to Springer Japan KK, part of Springer Nature 2023 The Impact of Third-Party Financial Products on the Consumer Loan Services Market in the Banking Sector: An Analysis of Sales Progress and Consumer Behavior Narendra Singh Ranawat 1  · Ayon Chakraborty 2 Extended author information available on the last page of the article 1 3