| E20-0037_Personal_Credit_Loan_Accounting.pdf | | IBM General Information Manual
Personal Credit Loan Accounting
PERSONAL CREDIT LOAN ACCOUNTING
Banks extend installment credit by financing purchases made through deal-
ers and making loans to individuals for personal needs. Such loans are
referred to as consumer credit, personal credit, installment loans, time
sales, etc.
Generally, a Personal Credit Department grants loans directly to the bor-
rower. Other types of loans represent the purchase of installment con-
tracts or the financing of time sales contracts arising out of the sale of
an article of merchandise or resulting from services performed, such as
home improvement and modernization.
IBM Accounting is unique in its ability to satisfy all the requirements of
Installment Loan Accounting. Regardless of the loan clasdification, spe-
cific advantages result from the adoption of the IBM method.
These include:
1. The automatic preparation of payment coupons.
2. The elimination of manu |
