Consumer Finance in India-Part 1

Consumer finance in the most basic sense of the word refers to any kind of lending to consumers. In United States it refers to the branch that is lending the amount which is actually very low than the perfect credit. It is the part of retail banking. One of the best ways to get the unsecured loans is through the consumer finance. Through consumer financing one can easily get the loans and can meet the demands and the desires. The term includes the following mentioned activities and these are as follows:
• Loans
• Indirect Finance
A RECENT poll by Asia Money has ranked HDFC Bank as the number one bank in India in categories such as customer service, back-office or post trade finance, competitive and prompt spot pricing, forex options provider for non-Asian currencies, currency strategy provider and technical analysis. The latest issue of the Asian Bankers Journal ranks HDFC Bank at No 7 in the list of strongest banks.

Consumer finance opportunity in India is one of the best available anywhere in the world. Sixty-four per cent of our GDP is domestic consumption-based. We have the youngest population in the world, demographics are changing, types of jobs are changing, and reforms are turning up which will lead to further impetus to consumer dynamics.

In addition, our loan to GDP for consumer loan is 6 per cent; in most developed countries it is 100 per cent and in marginally developed countries it is 40 per cent. So consumer finance will continue to be a major growth area.