Consumer Credit

Consumer credit is described as relatively small loan generally granted to private individuals to acquire consumer durables, cars, houses or finance holidays or education.

It is considered as a personal loan, that is:

• Loan for a relatively small amount, repayable in installments and usually granted to salaried employees for personal consumption and durable goods purchases. Personal loans can be used at the borrower's discretion and not tied to a specific purpose.
• Credit granted to a private person for non-commercial purposes solely on the basis of that person's creditworthiness, income and financial circumstances. Loan granted on the strength of the borrower's credit history or reputation.
• Loan granted to private persons for non-commercial purposes, e.g. consumer credit. The amount and term of a personal loan depend on the needs of the borrower.

One of the most demanded types of consumer credit is a mortgage loan; that is a loan secured by a mortgage on real property.