Consumer Credit in India

Consumer Credit‘s essence lies in establishing a sustainable fair banker customer relation. The United Nations Guidelines (as expanded in 1999) emphasize that the consumer’s economic interests like - right to information, right to choice or decision making, right not to be exploited by unconscionable rate of interests. Earlier there were common practice of Standard form of Contracts where there was no pre negotiation between banks or financiers and the consumers; and the latter were left with the choice either to accept or leave the contractual obligations. However, with the 21st Century Age of Global Consumerism, the banks are duty bound to stipulate beforehand all the essentials like-the rate of interests involved, penalty for default etc. The present doctrinal paper aims to portray the concept, economic significance with relevance of consumer credit models in other countries emphasizing mainly on its progress and challenges in India, emphasizing on its Hypothesis - In present Scenario, there is urgent need to introduce an efficacious uniform consumer credit law in India for facilitating transparency and fairness in the Banker-customer mutual relationship, has formulated following Research Objectives for systematic study: Drawing the economics approach in studying consumer credit transactions. Analyzing the negative outcome of banking credit services. Depicting the modern-day significance of consumer credit legislations in Western Countries like- US and UK Vis-a-Vis Indian consumer credit legislations along with role attributed to legal enforcement bodies in cases of banking deficiency of services.