Professional Documents
Culture Documents
MEANING OF CONSUMER
FINANCE
• In A Tripartite Arrangement
A) Customer/Borrower
B) Dealer/Sellers
C)financer(may Be A Bank Or Non Banking Company)
MODES OF CONSUMER FINANCE
• HIRE PURCHASE
• INSTALMENT SYSTEM
• OVERDRAFT
• CREDIT LOANS
HIRE PURCHASE
• Hire purchase means a transaction where goods are purchased
and sold on the terms that
1)payment will be in installment
2)possession of goods is given immediately
3)ownership remains with sellers till the last installment paid by
buyer
4)the seller can repossess the good in case of any default
5)each installment will be treaed as hire charges till the last
installment
RIGHTS OF HIRER
• The hiree (vendor) can not terminate the hire purchase agreement
The right to repossess the goods
1) Conditional sale
2) Pledge or hypothecation
Overdraft/demand loans
Repayment Period
5 -7 years after commencement of
repayment
Automobile Finance
Under the banks auto loan scheme there
is a vehicle loan for every class i.e. 2
wheeler’s loan, 2nd hand car loans, new car
loan. The market for auto loans is large
and lot of opportunity exists there for the
banks and other finance companies who
by adopting customer friendly policies and
mass advertising can surely make auto
loan scheme a success.
Eligibility
• Permanent employees of govt.,
public/private sector with minimum of
3years service.
• Professionals and self employed such as
doctors, CASs, MBAs etc.
• Persons engaged in agricultural and allied
activities.
Purpose
• Speedy approval
Finance to meet Festival
Expenses
The lower or middle income group of
individuals who cannot satisfy the
requirements of the personal loan scheme
seek financial assistance from the banks
for short duration to meet expenditure
relating to a festival. The bank may charge
nominal fee of Rs.100 per application.
Eligibility Criteria
• Employees of govt. / Profit making Public /
institutions. Etc. with a minimum of 2
years service.
• Self employed persons
• Persons having regular source of income
from verifiable sources like pension and
interest from govt. securities etc.
Holiday Finance
Today, consumer who finds himself unable
to meet the cost of package gets ready to
accept the option. For ex, SOTC’s
European tour package is priced at over
Rs.76,000.
Finance for Medical
Treatment
It is very difficult for individuals especially
the salaried class to arrange funds at short
notice to make payments to hospitals.
Banks extend loans to meet such
exigencies. Loans are available to all such
patients who are suffering from diseases
where mortality probability is low and the
patient emerges as a healthier person
after treatment.
Benefits of Consumer
Finance
• Rising standard of living
• Forced savings
• Help consumes meet emergencies
• Increase in demand for physical goods
Thank-You