The Personal/Casual Credit Suppliers

Personal 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.

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.

Hari Srinivas -
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