The term consumer credit refers to different forms of credit agreements available to consumers which are provided by credit institutions, credit unions and retail credit firms.
These types of credit are:
a: Personal Loan, typical period of loan is 1-5 years. Longer terms are also available.
b: Hire Purchase, this where a consumer agrees to hire a product / goods from a finance company. At the end of the agreed period the consumer has the option to purchase the product / goods from the finance company provided that all the payments have been made over the agreed period. However, the consumer is not obliged to buy the products / goods.
c: Credit Sale Agreement, is when a consumer purchases a product / goods from a retailer with the aid of a loan provided by a finance company (the retailer acts as a credit intermediary in this case). The consumer owns the goods from day one and they cannot be repossessed if the consumer defaults on the loan repayments.
d: Conditional Sale Agreements, this is similar to a hire …