What is a Consumer Loan
Consumer credit came into existence when the individuals who had the need for a product, but couldn’t purchase because of lack of money. They resorted to borrowing in the market to fulfill their need.
As a result credit organizations sprang up to cater to the needs of these consumers wherein loans are granted after ascertaining their creditworthiness.
The typical form of a consumer credit transaction is one where the individual pays a part of the cash purchase price on taking delivery of the asset and agrees to pay the balance with interest over a specified period of time.
Consumer loans can come from a variety of places, including financial institutions or lending platforms.