Volume : II, Issue : I, January - 2013

Problems & Prospects of Hire Purchase in India

Hemali Broker, Ankita Tiwari, Shifa Bhatti

Abstract :

A \'hire-purchase transaction\' has been defined as a system of financing where goods are bought by putting down a deposit and then periodically paying off the balance of the purchase price plus interest. The process involves the drafting and signing of an agreement between the hirer (the consumer) and the owner (the lending institution). The process of hire-purchase financing has become an alternative option for consumers who want to buy large and expensive items which may otherwise be difficult to afford. The transactions allow the buyer to pay for items without cashing in investments or savings, and to spread the cost of expensive items over an extended period. In such transactions ownership of goods is transferred to a finance company at a discounted price, and the company hires out and then sells those goods to the buyer.

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Hemali Broker,Ankita Tiwari,Shifa Bhatti Problems & Prospects of Hire Purchase in India International Journal of Scientific Research, Vol.II, Issue.I January 2013

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