Consumer Finance Loans: A Scam Targeting the Middle Class?

have a friend. He purchased an iPhone. He took a loan to get that device. The agreement is that he pays back that loan in the next 48 months (4 years). I have another friend. He & his wife purchased a lot of furniture by taking a loan. The condition is that they repay the money in the next 24 months (2 years). It’s not just them. I have also taken out a loan to get a product. Like me & my friends, more than 91% of Indian Graduates & 78% of Individuals earning more than Rs. 30,000 prefer taking a consumer finance loan to purchase iPhones, MacBooks, Laptops, furniture, TVs, etc. There is only one reason these many people prefer taking loans: it allows them to get the product now and pay for it later. This convenience begs the question: Is consumer finance a good thing, or is it too good to be true? So, we started researching. We reviewed the policies of HDFC Bank, Bajaj Finserv, ICICI Bank, IDFC First Bank, Indusland Bank, Tata Capitals & Kotak Mahindra Bank to reach our present conclusions (Table 1 consists of all the essential details for your reference). We reviewed the recent measures the Reserve Bank of India (RBI) took to regulate these loans. We researched the current market situation when it comes to credit cards & other types of consumer loans. And we came to one conclusion. Consumer Finance is a dishonest & abusive scheme created to cash in on the hopes of middle-class, hardworking employees. Consumers who purchase through this will likely end up paying more than 65% of the cost of the product in penalties and interest. Through this exposè, we prove how consumers are drastically impacted by Banks & Finance Companies offering Consumer Finance.

Read in Maximiser