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P ersonal credit suppliers are usually single individuals who supply credit on a "casual"
and unencumbered manner. Typically, casual suppliers include friends, relatives,
neighbours etc. Some of the characteristics common to all the casual suppliers are:
- Single operators:
- Casual operators are typically single individuals who operate in a need-based
manner.
- Irregular supply:
- The credit supplied by the casual suppliers are irregular, not always available.
That
is, only when surplus funds are available with the individual or only when requested by
a close friend/relative/neighbour, is the loan made.
- Very few terms and conditions:
- The terms and conditions imposed on borrowers from casual suppliers are very
few,
usually with no interest payments or regular repayment schedules. Transaction
records
are not usually kept.
- Reciprocation:
- Credit given by casual suppliers is usually loosely transacted and is considered
as
a "favour" made for a future reciprocation by the borrower.
- Very close proximity:
- The physical proximity of the borrower and the lender is usually very close,
either
in the place of work or in the settlement itself.
Here is a central idea from casual suppiers: the very flexible terms and
conditions and reciprocity of the transaction which does not place any undue
obligation on the lender or borrower.
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