What is consumer finance?

Question

Qualitifications? Restrictions? collateral needed? limit on money borrowed? How much time do we get to pay off that money? Types of payment plans? Examples of locations that deal with consumer finance?

Answer 1

Consumer finance is a term for customers who purchase goods through a loan or financing.
The restrictions, limit, interest rate, and term length all are determined by what is being purchased, the credit rating of the customer, the company that is financing them and what type of loan it is.
1 example would be what is referred to as a chattel loan.
it is based on using the item that is purchased on credit as collateral for for the loan. therefore if you bought a TV that costs $5000. and your financing was for $5000. they would base the repayment of it to suit the customer, and the depreciating value of the TV. the normal financing term for things like TVs is 24 to 48 months. and if you don't make the payments they can seize the TV.

Answer 2

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.

Answer 3

Consumer Finance is that business of lending money to individual person rather than company!

Answer 4

A consumer finance loan includes funds that are lent or a line of credit that has periodic payments and terms longer than 60 days. These loans may be secured by personal or real property (e.g. first or second residential mortgages) or as unsecured loans.

Answer 5

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