What is Consumer Finance?
Consumer finance is defined as “lending of loans to individuals for purchase of consumer durables for their personal or household consumption purposes”. The great advantage of CF (consumer finance) is that it enhances the mobility of people towards costly as well as the not so costly products on a scheme of “Buy Now and Pay Later” to be repaid in equal monthly installments (EMI). This facilitates to satisfy needs such as electronic goods, automobiles, real estate, etc. These examples have become a dire necessity of life. In this fast changing scenario of urbanization the necessities of households are increasing and income is still limited. In this situation, an individual or household are attracted towards financing options. Instead of paying the entire amount upfront, you can purchase one product without paying the full amount at one time. For example, if you are going to purchase a peice of real estate for $100,000.00 and select the CF option, then you can usually make a small down p
Consumer finance has to do with the lending process that occurs between the consumer and a lender. In some instances, the lender may be a bank or financial institution. At other times, the lender may be a business that offers in house credit in exchange for the business of the consumer. Consumer finance can include just about any type of lending activity that results in the extension of credit to a consumer. Most people have received financial assistance in obtaining desirable products through the use of consumer finance methods. In retail banking, the lender extends secured and unsecured loans to consumers who wish to purchase automobiles, homes, or engage in other activities that require substantial financing, such as remodeling a home. Generally, consumer lending of this type caries some degree of competition, since the consumer with a solid credit rating can often shop around and secure superior interest rates and terms for the loan agreement. At the same time, not all forms of con
