White goods financing, car
financing, housing financing etc. come under this category. Indian bourgeois is
burgeoning and its love for a range of consumer durable is insatiably ever
increasing. The people are willing to spend before earning. Moreover, this
tendency is exploited by most NBFCs.
For consumer-financing NBFCs faces the problem with individual credit worthiness,
therefore NBFCs adopt an indirect route. A tripartite credit system is thus
involved and generated, that is to finance through the manufacturers or
dealers. Few companies are engaged in that business.