In the case of a consumer loan, the borrower can freely use the borrowed funds. To define long-term consumer credit, see Consumer Credit, you can include it in your selection. Consumer credit is not covered by the definition of microcredit. The Boot Definition, something that was included in the offer.
Definition of consumer credit
In banking, loans to individuals are also referred to as consumer credit. This is a kind of personal loan. The intended use is mainly the private consumption. This can be, for example, the insurance of a trip, a car, the purchase of a house, etc. Consumer credit is usually repaid in a fixed monthly installment.
Consumer credit financing is becoming increasingly popular. The main reason for this is the high level of adaptability, as consumer credit can be repaid in full or in part after a very short period of time. In addition, the handling is very straightforward because, in contrast to the construction cost financing, very few documents are required.
Often the credit institutions divide the types of loans according to the objectives of use. One differentiates z. For example, the following types of loans: Modernization loans, which primarily serve the renovation of residential real estate. A very important factor in the credit behavior of the house bank is the targeted precise use of a loan by Bets ban. Loans, z. For example, for large investments to increase the production volume of an enterprise, inflation has a very different impact than pure consumer credit or loans for the construction sector.
- The solution of an emergency: health expenses, replacement of an electrical appliance, attendance at school. The personal loan is a financial solution that gives you freedom and flexibility. With our consultants in the branch office or from a distance, you are individually accompanied in the definition of your life situation, your personal financial loan developed and supported in all phases of your loan.
Criticizing the methods of Infra Bank Private Customers
The scope of this power, ultimately as power over the consumer, the employee or as a political weight, is limited by law, as far as no informal institutions (standards, contracts, etc.) are in force. There is a well-founded allegation that Infra Group companies exploit the poor in consumer finance through discrimination. The topic focuses on Infra Bank’s private customer business, above all the consumer loan business and above all the installment loan business.
It is assumed that the clientele is particularly dependent on Infra Bank’s business policy orientation. If the thesis confirms that Infra Bank’s huge profits are being generated at the expense of people in socially uncertain circumstances, then the identified conflict of interest is a behavioral pattern that will benefit many.
It asks detailed questions about how to achieve Infra Bank’s extraordinary revenue. Should this be confirmed, it should be examined to what extent the alleged offensive and aggressive enterprise practices of Infra Bank are permanently harmful to civil society. This work aims to shed light on Infra Bank’s business.
In the run-up, we discuss how Infra Bank and City Group are discussed, based on an analysis of the newspaper. It then presents the credit system developed by Infra Bank, which is required for the empirical evidence based on it. You want to check if there is robbery financing. That would be the case if Infra Bank used asymmetric power and information sharing to generate over-charge and over-the-counter expenditures that the borrower has to accept because of its poor economic condition and independence.
The reasoning of the power of disaggregation of the information analyzed by consumer organizations to which the dissatisfied consumer regularly turns can be counteracted by the presentation of the estimated number of unreported cases: if, despite any financial loss, the economic advantage of the lending transaction has been achieved and the liability repaid, 26 As a rule, no action is brought against the house bank.
Recent research has shown that funds and loans are a taboo subject, especially in the lower social classes. The suspicion that these are unreported cases can also be justified by economic and pedagogical obstacles, which in many cases do not lead to legal malpractice against Infra Bank.
It deals with both the requirements and consequences of the crowding out loans. Infra Bank (and Infra Group) are portrayed in different ways in the media discussion: economic-oriented publicity turns Infra Bank into an industry leader30, delivering sustainable double-digit profit gains31 and generating impressive profits in the businesses, many German credit institutions withdrew from it some time ago due to negative forecasts.
The FRB then imposed a further $ 70 million fine in 2004, which was the highest possible fine ever imposed by the US Federal Reserve. The 63 Group commented that this fine had no material impact on the Group’s earnings, which stood at $ 18.7 billion in 2003, 64 of which, according to it, accounted for about half of global retail banking.
“From an economic point of view, consumer credit is only a loan to final consumers who want to use the buyer power they buy to meet their private needs.” Ultimately, these are all loans that are spent on everyday life (consumption). The main feature of a consumer loan is the form of credit protection. If the usual “construction loan” secured by a mortgage, the consumer credit is underpinned with confidence in future income.
Consumer credit generally consists of overdrafts, credit card loans and installment loans. With a consumer credit thus exists the possibility, the purchasing power of the future income (interest) against payment in the Presence to transfer. The importance of this transfer has increased significantly over the past few decades: “Between the fourth quarter of 1970 and the fourth quarter of 2003, consumer credit to households increased more than 15-fold, from 15.174 billion to 230.913 billion.
For consumer credit, the credit quality is differentiated according to individual and factual aspects. Therefore, an unproductive loan is spent on non-productive consumption. Due to the interest burden and the loss of income from savings services (more or less as opportunity costs of consumption), consumption becomes more complex. In the extreme case, this practice is predatory lending. The combination of the two elements results in a valuation matrix that provides a clear overview of consumer credit agreements: Infra Bank is dominated by a stringent corporate culture that consistently leads to debt and over-indebtedness – an offensive debt incentive system.
It is part of the corporate culture in which employees develop certain behaviors, patterns of thinking and action that encourage consistent values and norms. The way in which employees present themselves to the customers also reflects them. It is therefore a general principle of conduct for the relationship between internal and external employees and between employees and customers.
With the help of this creditworthiness culture, allocation decisions in social conditions can be internally justified and answered, which can be attributed to common basic ideas of the creditworthiness culture. The meaning of these can vary, so that the credit culture between the extremities of the individual particularism (everyone is responsible for his decisions) and the total uniformity (all decisions are due to the creditworthiness culture) can vary.
The unification and unbundling of Infra Bank’s credit culture shows a high degree of unity, which is why we can speak of an overall system. As a result, Infra Bank’s retail core business, the consumer credit system and its intentions are discussed in detail. The chain loan system perfected by Infra Bank is presented on the basis of historical experience and later clarified.
Their distribution is decisive for the debt spiral and an essential component of the alleged displacement loans. Infra Bank can call the core business a debt trio, because in a three-way system, it grants unfair loans, which are an incentive system for unproductive debt and over-indebtedness. If the credit lines are used, the customer is offered an installment loan, in which the existing loans are rescheduled.
If the current account credit line and the credit card loan are used up again, Infra Bank will not grant advantageous additional installment credits, but will undertake a complete rescheduling and replenishment of the existing installment loan. Infra Bank opposes this presentation and pretends to make individual decisions about the future course of the loan with the respective borrower. They hope for sustainable profits that are not reduced or destroyed by scalandals, court decisions or laws.