Question

Explain consumers credit.

Answer 1

Consumer credit refers to the credit facilities provided to individuals by banks and financial institutions to help them purchase goods and services for personal use. It allows consumers to buy now and pay later, usually in instalments over time. Common forms of consumer credit include credit cards, personal loans, hire-purchase agreements, and EMIs (Equated Monthly Installments). Consumer credit plays a key role in boosting consumer spending, which in turn supports overall economic growth.