Consumer finance
- Consumer credit provides short term/medium term loans to finance purchase of goods or services for personal use. There are four important sources of consumer finance viz manufacturers/sellers/dealers, finance companies, banks and credit card companies. In the past, banks provided finance to manufacturing organizations.
- The consumers borrowed money from the sellers/dealers directly. Finance companies too entered this arena while credit card entitles with the support from banks started operating with substantial success. Both nationalized and private sector banks have started marketing aggressively for a large slice of the market share in this consumer finance segment.
- Employers also provide loan facilities to salary earners as a part of welfare scheme for their employees. In big concerns, employees organize themselves into co-operative credit societies and funds raised by its members through periodical contributions are used as loan assistance at low rate of interest.
No comments:
Post a Comment