it was a group effort and i mention them all

1. Consumer credit
Group-3

2. Consumer Credit
• Consumer credit is a type of debt which is incurred by
a person during purchase or sale
• Consumer credit helps to finance the purchase of
goods or services for self consumption or to refinance
debts incurred for such purposes.
• The supply of loan by lenders either in the form of
cash loans or by sellers in the form of sales credit

3. Types of Consumer Credit
• Close end credit (installment credit)
 types of closed-end credit
1. Installment sales credit
2. Installment cash credit
3. Single lump- sum credit
• Open end credit (revolving credit)

4. Various important aspects of
consumer finance
• Parties to the transaction
• Modes of consumer finance/ credit
• Procedure for granting finance/credit
• Terms of financing/ finance
• Purpose of raising consumer finance

5. Parties to the transaction
• Tripartite arrangement- three parties
• Bipartite arrangement – two parties

6. Modes of consumer credit
• Hire purchase
• Installment system
• Overdraft/demand loans
• Credit cards
• Financial corporation

7. Procedure for granting
finance/credit
Per-sanction stage
• Collect credit information
• Receiving of application form
1. Personal data
2. Job profile
3. Property details
4. Detail of assets to be purchased
5. Particular of loan
• Analyzing the customer’s creditworthiness
• Acceptation / rejection application
• Entering into a contract

8. Post-sanction stage
• Submission of document
• Payment of credit
• Transfer of possession
• Payment of installment

9. Terms of financing/ finance
• Amount of loan and credit
• Margin requirements
• Security
• Period of credit
• Rate of interest
• Fees and charges
• Mode of payment

10. Purpose of raising consumer
finance
• Education loan
• Automobile finance
• Personal loans
• Finance to meet festival expanses
• Finance for medical treatment
• Holiday finance. etc

11. Advantages of Consumer Credit-
• Raising standard of living
• Forced saving
• Help consumer meet emergencies
• Increase in demand for physical goods
• Current use of goods and services
• Permits purchase even when funds are low
• A cushion for financial emergencies
• Advance notice of sales
• Easier to return merchandise

12. Advantages of Consumer Credit
(cont.)
• Convenient when shopping
• Provides a record of expenses
• One monthly payment
• Safer than carrying cash
• Needed for hotel reservations, car rentals, and shopping online
• Take advantage of float time/grace period
• Rebates, airline miles, or other bonuses
• Credit indicates financial stability

13. Disadvantages of Consumer Credit-
• Temptation to overspend
• Can create long-term financial problems and slow
progress toward financial goals
• Potential loss of merchandise due to late or non-
payment and even because of defaulting of loan/credit.
• Tires up future income
• Credit costs money - more costly than paying with cash

14. Recent Developments in consumer
credit-
• Debit card finance
• Pay later wallets
• Buy now pay later

15. Suggestions and Opinions on
Consumer Credit and Understanding
future scope
• High chances of growth in future.
• For middle class people it makes money management
more easier and balanced.
• Lack of orientation is a big problem.
• Can be a successful business . Ex: Bajaj Finserv.
• Can be a great option for lower middle class people.

16. Thank You