Financing for consumer durables by commercial banks

Abstract

This study deals with the financing of consumer durables through installment credit from the viewpoint of Indian Commercial Banks.This is an area where there is no much of contemporary secondary literature available, and there does not seem to have been any systematic thought given to this area of activity by the banks themselves. The authors have surveyed the existing literature regarding the economic consequence of installment credit and the experience of installment credit abroad.Some bankers and other people in the industry have been contacted to get a picture of the existing scenario in India with regard to the provision of installment credit.The authors have made out a case favoring the entry of commercial banks into this line of activity, and on that basis, a workable installment credit scheme has been designed.