Question

Explain ‘deferred instalment plan’ as a mode of payment

Answer 1

Answer:

Deferred Installment Plan- Deferred Installment Plant is mainly  known as ‘buy now – pay later’ plan, where  the buyer pays a minimum amount to the seller  when he or she takes the possession of the good or product.  The remaining money is paid later through installments over a period.

The installments are paid over a monthly basis or quarterly basis. The unpaid amount is divided and interest is charged on it. Sometimes it also comes with interest free installments.