Good morning
Credit reforms in new EraTopic:-
Meaning and definition of credit & ReformsMeaning of
credit:- The ability of customer to obtain goods & services
before payment based on the trust. That payment will be made in
feature is known as credit.Definition:- As per business term credit
defined as loan & advance provided By company or firm to the
customer on credit base with hope of return is known as credit.
Reforms means to make changes in present or existing firm and
company is known as reformAs per dictionary:- Reform may be defined
as To Make changes (something especially on institution or
practice) in Oder to improve it. Reforms:-
Origin of credit reform:-In olden days the people are not aware
of the money valve & credit facilities. There was practice of
Batter system which means:- People Use to make payment with help
food grain, animals by which exchange take place between two
parties. By improvement of science & technology the method
payment was improved in faster way. Ex:-Credit card payment, online
payment, Mobile payment , E-Business etc
Credit out standing as per population in percentageIn 1996-97
credit%In 2013-14 credit%1)Metropolitan cities -57% 2)Rural areas
-11%3)Semi Urban areas- 12%4)Urban areas -17%1)Metropolitan cities
- 72%2) Rural areas -25%3)Semi Urban areas-18%4)Urban areas
-28%
Increase purchase powerProvide advance payment Provide easy way
of paymentProtection of purchaseCredit card payment Advantages of
credit
Increase purchase power:- The credit reforms involves in
increase purchasing power. By providing the goods on credit base
which means the purchase goods made present the payment made in
feature.Provide Advance payment:-Now days there is very big
commutation in business, marketing, banking. etc Use of old method
payment doesnt holds good. So the new advance technology developed
in credit reform.
Provide easy way of payment:-As I quoted the line in the above
meaning and definition like e-payment which very fast and advance
mode of payment developed to protect the interest of people and
provide best services.Protection of buyer & seller:-The new
credit reform protect both buyer and seller Credit card benefits:-
The advance credit payment provide this feature to the customer
where the customer use to buy the goods and done other services
with credit cards.
Disadvantages of creditCredit card almost costs moneyIt become
habit encourage people overspendingReduce future buying Over use of
credit cards leads to poor credit recordExtra fees added to total
cost
Credit card almost costs money:- The credit card payment is one
of payment made through credit card. Hence the illiterate people
can not understand the use of credit card, and terms &
condition of it. And also it cost to be maintained. It become habit
encourage people overspending :- The use of more credit card
payment encourage the people over spending.Reduce future buying :-
It discourage the customer by misappropriation of credit
payment
Over use of credit card leads to poor credit record :- The over
use of credit payment reduce in the credit record. Because the
credit payment charge extra charges on payment.Extra fess added to
total cost:- The credit payment collect extra charge like tax on
each payment. This leads discourage people to buy in feature.
New reforms in credit payment Credit card paymentOnline payment
E-businessMobile payment
Credit card payment:-It is one of most advance mode of payment
by which the payment made though credit card by way of inserting
card or scratching card.Online payment:-This is also one kind of
payment where the customer as to open account in bank and also
follow some terms and condition by doing this he can start online
payment E-business:-the business which carry with electronic device
or through internet.
Mobile payment:-It is one kind of payment where the payment of
money transfer form one person to another through mobile phones.
Credit reform development in India The credit condition in India
has developed form after independence day to till now the credit
ratio has well developed in India by implementing new and advance
mode of payment. By increase in credit condition the GDP growth
increase. From 2011-12 the GDP was 6.9% which increase in 2014-15
7.4%
-
