Question

What is meant by “Sale through Instalment Payment System”?

Answer 1

The Instalment Payment System is a method of purchasing goods where:
1. Ownership and Payment: The buyer takes immediate possession of the goods but pays the price in smaller, regular installments over a period of
time.
2. Interest Charges: In many cases, interest is charged on the remaining balance, increasing the total cost.
3. Example: High-value goods like cars, furniture, or electronics are often sold using this system to make them affordable for customers.
This system allows buyers to enjoy the benefits of ownership while spreading the financial burden over time. However, failure to pay installments can lead to repossession of the goods by the seller.