27003040 consumer finance

8/12/2019 27003040 Consumer Finance

1/36

CONSUMER FINANCE


2/36

MEANING OF CONSUMERFINANCE

It refers to the raising of finance by individuals foreeting their !ersonal e"!enditure or for theac#uisition of durable consu er goods and for the

!urchase $creation of an assets %


3/36

IM&OR'AN' AS&EC'S &arties to the transactions Modes of consu er finance &rocedure for granting

'er s of financing &ur!ose of raising finance (enefits of consu er finance


4/36

&AR'IES 'O ')E 'RANSAC'ION

In A (i!artite Arrange ent A*borro+er$Consu er (*dealer Cu Financer

In A 'ri!artite Arrange ent A* Custo er$(orro+er (* ,ealer$Sellers C*financer- ay (e A (an. Or Non (an.ing Co !any*


5/36

MO,ES OF CONSUMER FINANCE

)IRE &URC)ASE INS'A/MEN' S0S'EM O1ER,RAF'

CRE,I' /OANS


6/36

)IRE &URC)ASE )ire !urchase eans a transaction +here goods are !urchased

and sold on the ter s that 2*!ay ent +ill be in install ent 3*!ossession of goods is given i ediately 4*o+nershi! re ains +ith sellers till the last install ent !aid by

buyer 5*the seller can re!ossess the good in case of any default

6*each install ent +ill be treaed as hire charges till the lastinstall ent


7/36

RIGHTS OF HIRER 'he hiree -vendor* can not ter inate the hire !urchase agree ent

'he right to re!ossess the goods

'he hirer has a right of receiving a state ent

E"cess !ay ent ade by the hirer +ill be returned by the o+ner tohi


8/36

installment system under hirepurchase

It ay be of t+o ty!es

2* Conditional sale

3* &ledge or hy!othecation


9/36

Overdraft$de and loans

Under an overdraft interest is charged on the a ount actuallyutili7ed by individual custo er% overdraft facility is !rovided againstthe security of life insurance !olicies8 fi"ed de!osits8 govt% securities

etc%1) Loan against equitable mortgage of immovable property 9%

2) Loan against NSC/IVP/KVP


10/36

4*L!"NS "#"INS$ LI%& INS'("NC& P!LICI&S In this loan is advanced either in for of de and loans or overdraft as :;< to =6

27003040 consumer finance

Documents