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    Consumer Finance

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    Vaishali Trivedi Ojha
    Consumer finance refers to granting credit to consumers to purchase durable goods over an extended period. It allows consumers to buy items like cars, appliances, and electronics through installment plans or revolving credit lines. Sources of consumer finance include banks, credit card companies, and non-bank financial companies. Demand is driven by increasing incomes, convenient installment payments, and a growth in single-person households. Both consumers and the economy benefit, though it also carries risks like insolvency if not managed responsibly.

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    Consumer Finance

    Uploaded by

    Vaishali Trivedi Ojha
    489 views17 pages
    Consumer finance refers to granting credit to consumers to purchase durable goods over an extended period. It allows consumers to buy items like cars, appliances, and electronics through installment plans or revolving credit lines. Sources of consumer finance include banks, credit card companies, and non-bank financial companies. Demand is driven by increasing incomes, convenient installment payments, and a growth in single-person households. Both consumers and the economy benefit, though it also carries risks like insolvency if not managed responsibly.

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    Consumer Finance

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    Consumer finance refers to granting credit to consumers to purchase durable goods over an extended period. It allows consumers to buy items like cars, appliances, and electronics through installment plans or revolving credit lines. Sources of consumer finance include banks, credit card companies, and non-bank financial companies. Demand is driven by increasing incomes, convenient installment payments, and a growth in single-person households. Both consumers and the economy benefit, though it also carries risks like insolvency if not managed responsibly.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    489 views17 pages

    Consumer Finance

    Uploaded by

    Vaishali Trivedi Ojha
    Consumer finance refers to granting credit to consumers to purchase durable goods over an extended period. It allows consumers to buy items like cars, appliances, and electronics through installment plans or revolving credit lines. Sources of consumer finance include banks, credit card companies, and non-bank financial companies. Demand is driven by increasing incomes, convenient installment payments, and a growth in single-person households. Both consumers and the economy benefit, though it also carries risks like insolvency if not managed responsibly.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 17

    Consumer Finance

    DEFINITION
    • The term consumer finance refers to the
    activities involved in granting credit to
    consumers to enable them to possess goods
    meant for everyday use.
    • Business procedure through which the
    consumers purchase semi durable and durable
    goods other than real estate in order to obtain a
    series of payments extending over a period of 3
    months to 5 yrs.
    KEY CONCEPTS
    • How to design a personal financial plan
    • How financial markets work
    • How to select among various savings and
    investment options
    • How to find and use investment information
    • How to recognize and victim-proof yourself
    against investment fraud
    TYPES OF CONSUMER CREDIT
    • Revolving credit
    • Fixed credit
    • Cash Loan
    • Secured Finance
    • Unsecured Finance
    SOURCES OF CONSUMER FINANCE
    • Traders 
    • Commercial Banks
    • Credit Card Institutions
    • NBFC’s
    • Credit Unions
    MODE OF CONSUMER FINANCE
    • Open Account
    • Credit card
    • Revolving account
    • Option plan
    • Installment account
    • Cash loan
    DEMAND FOR CONSUMER
    FINANCE(FACTORS)
    • Increase in consumer disposable income
    • Enhancement in real income of consumer
    • Convenient size of installment payment
    • Growth in nuclear families leading to number
    of house holds
    • Lower charges
    • Down payment and credit contract
    PRODUCTS COVERED
    • Consumers financing covers a wide range of products such as:
    • Cars
    • Televisions
    • Washing machines
    • Refrigerators
    • Air conditioners
    • The products covered possess some distinct feature such as :
    • Durability
    • Sustainability
    • Salability
    • Serviceability
    TERMS OF FINANCE 
    • Eligibility
    • Guarantee
    • Tenure
    • Rate of interest 
    • Other charges
    • Mode of payment
    • Credit evaluation
    • In the case of institutional financing there is an
    arrangement for deduction of installments from the salary
    of the employee which is remitted to the finance company.
    ADVANTAGES OF CONSUMER
    CREDIT(FINANCE)
    • Enjoying
    • Saving
    • Convenient mode
    • Meeting emergency
    • Maximization of revenues
    • Accelerates industrial investment
    • Enhanced living standard
    • Promoting Economic development
    DISADVANTAGES OF CONSUMER FINANCE

    • Thoughtless buying
    • Insolvency
    • Costly
    • Risk to traders
    • Artificial Boom
    • Bad Debt
    • Economic instability
    QUESTIONS TO ANSWER WHEN DESIGNING
    A PLAN?
    • What are my short and long term goals?
    • What is our total income after taxes and
    deductions?
    • What are our current living expenses?
    • What changes in living expenses do we
    expect?
    FINANCIAL TASKS OF YOUNG ADULTS

    • Select and train for a career


    • Maintain a good credit record
    • Develop a personal financial plan
    • Consider insurance protection
    • Start savings and investment programs
    NATIONAL SURVEY
    • People want to feel comfortable about their
    financial affairs. A recent national survey
    showed that 75% of college freshmen are
    concerned about their future financial security
    as compared to only 44% in 1970.
    REFERENCES
    • http://en.wikipedia.org/wiki/Universal_bank
    • http://www.investopedia.com/terms/u/universalb
    a nking.asp
    • http://www.investorwords.com/6767/consumer_fi
    nance.html
    • http://en.wikipedia.org/wiki/Bancassurance
    • http://en.wikipedia.org/wiki/Retail_banking
    • http://www.wisegeek.com/what-is-retail-
    lending.htm
    THANK YOU

    Any Questions?

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