HIRE PURCHASE SYSTEM

 Hire purchase is a type of installment plan that allows a buyer to

purchase an asset such as a car, furniture or electronics over a period
of time, while paying for it in installments.

 Hire purchase involves a definite procedure to be followed. For this,

an agreement called hire purchase agreement is made in written
between the parties involved in the hire purchase transaction.
CHARACTERISTICS OF HIRE PURCHASE SYSTEM
• Ownership:

• Downpayment:

• Interest rates:

• Default:

• Flexibility:

• Fees and charges:

PARTIES INVOLVED IN HIRE PURCHASE SYSTEM