Write the advantages and disadvantages of instalment schemes!
Answer in 100+ words
{Points : 50}
Very much urgent!
Answers
Answered by
4
Advantages of installment schemes are:-
Their method or procedure is quite simple to understand.
They provide fixed amount of depreciation throughout the life of the asset and help in understanding the amount of depreciation in advance
Disadvantages of installment schemes are:-
The customer has to pay a little more for a product then he would have if he would paid at a time.
The seller will have to wait for a long time to get the due amount spent from the customer for the product.
Their method or procedure is quite simple to understand.
They provide fixed amount of depreciation throughout the life of the asset and help in understanding the amount of depreciation in advance
Disadvantages of installment schemes are:-
The customer has to pay a little more for a product then he would have if he would paid at a time.
The seller will have to wait for a long time to get the due amount spent from the customer for the product.
rishilaugh:
very nice answer
Thanks sir!
Answered by
7
Advantages of installment schemes :-
1) The buyer is greatly benefited as he has to make the payment in installments. This system is greatly advantageous to the people having limited income.
2) It encourages thrift among the buyers who are forced to save some portion of their income for the payment of installments. This inculcates the habit of saving among the people.
3) The seller gets the installment which includes original price and interest. The interest amount is calculated in advance and added in total installments to be paid by the buyer.
Disadvantages of installment schemes :-
1) The buyer has to pay higher price for the article purchased which includes cost of the article plus interest amount. The rate of interest charged is very high.
2) It is being observed that the sellers do not get the installments from the buyers on time. They may choose wrong buyers which may put them in trouble. They have to waste time and incur extra expenditure for the recovery of the installments. This sometimes leads to serious conflicts between the buyers and sellers.
3) The seller has to take heavy risk under such system, though he has the right to take back the articles from the defaulting customers. The second hand goods fetch little price.
1) The buyer is greatly benefited as he has to make the payment in installments. This system is greatly advantageous to the people having limited income.
2) It encourages thrift among the buyers who are forced to save some portion of their income for the payment of installments. This inculcates the habit of saving among the people.
3) The seller gets the installment which includes original price and interest. The interest amount is calculated in advance and added in total installments to be paid by the buyer.
Disadvantages of installment schemes :-
1) The buyer has to pay higher price for the article purchased which includes cost of the article plus interest amount. The rate of interest charged is very high.
2) It is being observed that the sellers do not get the installments from the buyers on time. They may choose wrong buyers which may put them in trouble. They have to waste time and incur extra expenditure for the recovery of the installments. This sometimes leads to serious conflicts between the buyers and sellers.
3) The seller has to take heavy risk under such system, though he has the right to take back the articles from the defaulting customers. The second hand goods fetch little price.
Similar questions