<PAGE>
 
                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  -------------
                                    FORM 10-Q
                                  -------------


           | X | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 27, 1998

                                       OR

           |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                        For the transition period from ___ to ___

                          -----------------------------
                          Commission file number 1-6461
                          -----------------------------

                      GENERAL ELECTRIC CAPITAL CORPORATION
                      ------------------------------------
             (Exact name of registrant as specified in its charter)


            NEW YORK                                      13-1500700
(State or other jurisdiction of                        (I.R.S. Employer
 incorporation or organization)                        Identification No.)


      260 LONG RIDGE ROAD,
     STAMFORD, CONNECTICUT                                   06927
(Address of principal executive offices)                  (Zip Code)

                                 (203) 357-4000
              (Registrant's telephone number, including area code)

                      ------------------------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes |X| No | |

At July 30, 1998, 3,837,825 shares of common stock with a par value of $200 were
outstanding.

REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b)
OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED  DISCLOSURE
FORMAT.
<PAGE>
 
                                TABLE OF CONTENTS

                                                                   PAGE
                                                                 --------

PART I - FINANCIAL INFORMATION.

Item 1.       Financial Statements ..........................        1

Item 2.       Management's Discussion and Analysis of
              Results of Operations .........................        6

Exhibit 12.   Computation of Ratio of Earnings to Fixed
              Charges and Computation of Ratio of Earnings to
              Combined Fixed Charges and Preferred Stock
              Dividends .....................................        9


PART II - OTHER INFORMATION.

Item 6.       Exhibits and Reports on Form 8-K ..............       10

Signatures ..................................................       11

Index to Exhibits ...........................................       12
<PAGE>
 
                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>

        GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES

              CONDENSED STATEMENT OF CURRENT AND RETAINED EARNINGS

                                   (Unaudited)

                                                                    THREE MONTHS ENDED       SIX MONTHS ENDED  
                                                                   --------------------    --------------------
                                                                   JUNE 27,    JUNE 28,    JUNE 27,    JUNE 28,
(In millions)                                                         1998        1997        1998        1997 
                                                                   --------    --------    --------    --------
<S>                                                               <C>         <C>         <C>         <C>      
REVENUES
Revenues from services .........................................   $  8,091    $  6,597    $ 15,966    $ 13,454
Sales of goods .................................................      1,893       1,061       3,519       1,977
                                                                   --------    --------    --------    --------
                                                                      9,984       7,658      19,485      15,431
                                                                   --------    --------    --------    --------
EXPENSES
Interest .......................................................      2,105       1,780       4,053       3,491
Operating and administrative ...................................      2,719       1,925       5,350       4,142
Cost of goods sold .............................................      1,728         930       3,210       1,738
Insurance losses and policyholder and annuity benefits .........      1,367       1,106       2,709       2,255
Provision for losses on financing receivables ..................        408         337         740         649
Depreciation and amortization of buildings
 and equipment and equipment on operating leases ...............        598         563       1,250       1,128
Minority interest in net earnings of consolidated affiliates ...         10           1          21          14
                                                                   --------    --------    --------    --------
                                                                      8,935       6,642      17,333      13,417
                                                                   --------    --------    --------    --------
EARNINGS
Earnings before income taxes ...................................      1,049       1,016       2,152       2,014
Provision for income taxes .....................................       (236)       (298)       (559)       (599)
                                                                   --------    --------    --------    --------

NET EARNINGS ...................................................        813         718       1,593       1,415
Dividends ......................................................       (153)       (340)       (526)       (657)
Retained earnings at beginning of period .......................     12,268      11,058      11,861      10,678
                                                                   --------    --------    --------    --------
RETAINED EARNINGS AT END OF PERIOD .............................   $ 12,928    $ 11,436    $ 12,928    $ 11,436
                                                                   ========    ========    ========    ========
</TABLE>

See Notes to Condensed, Consolidated Financial Statements.

                                       1
<PAGE>
 
ITEM 1. FINANCIAL STATEMENTS (Continued).
<TABLE>
<CAPTION>

        GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES

                    CONDENSED STATEMENT OF FINANCIAL POSITION


(In millions)                                                                             JUNE 27,  DECEMBER 31 
                                                                                             1998          1997 
                                                                                          --------     --------
                                                                                        (Unaudited)           
<S>                                                                                       <C>          <C>      
ASSETS
Cash and equivalents ...................................................................  $  2,750    $  4,648
Investment securities ..................................................................    56,196      53,103
Financing receivables:
  Time sales and loans, net of deferred income .........................................    65,615      64,832
  Investment in financing leases, net of deferred income ...............................    43,641      41,769
                                                                                          --------    --------
                                                                                           109,256     106,601
  Allowance for losses on financing receivables ........................................    (2,871)     (2,802)
                                                                                          --------    --------
    Financing receivables - net ........................................................   106,385     103,799
Other receivables - net ................................................................    14,367      11,925
Equipment on operating leases (at cost), less accumulated amortization
 of $6,368 and $6,126 ..................................................................    19,783      18,689
Intangible assets ......................................................................     9,898       9,459
Inventories ............................................................................       764         786
Other assets ...........................................................................    30,665      26,368
                                                                                          --------    --------
      TOTAL ASSETS .....................................................................  $240,808    $228,777
                                                                                          ========    ========
LIABILITIES AND EQUITY
Short-term borrowings ..................................................................  $ 97,699    $ 91,680
Long-term borrowings:
  Senior ...............................................................................    46,573      44,437
  Subordinated .........................................................................       697         697
Insurance liabilities, reserves and annuity benefits ...................................    52,182      50,248
Other liabilities ......................................................................    14,447      14,315
Deferred income taxes ..................................................................     8,524       8,167
                                                                                          --------    --------
      Total liabilities ................................................................   220,122     209,544
                                                                                          --------    --------
Minority interest in equity of consolidated affiliates .................................     1,049         860
                                                                                          --------    --------

Unrealized gains on investment securities ..............................................     1,305       1,145
Foreign currency translation adjustments ...............................................      (180)       (147)
                                                                                          --------    --------
Accumulated non-owner changes in equity ................................................     1,125         998
Capital stock ..........................................................................       770         770
Additional paid-in capital .............................................................     4,814       4,744
Retained earnings ......................................................................    12,928      11,861
                                                                                          --------    --------
      Total equity .....................................................................    19,637      18,373
                                                                                          --------    --------
      TOTAL LIABILITIES AND EQUITY .....................................................  $240,808    $228,777
                                                                                          ========    ========
</TABLE>

See Notes to Condensed, Consolidated Financial Statements.

                                       2
<PAGE>
 
ITEM 1. FINANCIAL STATEMENTS (Continued).
<TABLE>
<CAPTION>

        GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES

                        CONDENSED STATEMENT OF CASH FLOWS

                                   (Unaudited)

                                                                                             SIX MONTHS ENDED  
                                                                                           --------------------
                                                                                           JUNE 27,    JUNE 28,
(In millions)                                                                                 1998        1997 
                                                                                           --------    --------
<S>                                                                                       <C>         <C>      
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings ...........................................................................   $  1,593    $  1,415
Adjustments to reconcile net earnings to cash provided from operating activities:
  Provision for losses on financing receivables ........................................        740         649
  Depreciation and amortization of buildings and equipment and
   equipment on operating leases .......................................................      1,250       1,128
  Other - net ..........................................................................      1,209       1,275
                                                                                           --------    --------
    Cash provided from operating activities ............................................      4,792       4,467
                                                                                           --------    --------
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in loans to customers .........................................................    (30,358)    (21,757)
Principal collections from customers ...................................................     28,864      20,571
Investment in assets on financing leases ...............................................     (8,867)     (7,407)
Principal collections on financing leases ..............................................      7,121       7,382
Net decrease (increase) in credit card receivables .....................................       (484)      1,700
Buildings and equipment and equipment on operating leases:
                   - additions .........................................................     (3,921)     (2,917)
                   - dispositions ......................................................      2,951       1,119
Payments for principal businesses purchased, net of cash acquired ......................       (849)       (581)
Purchases of investment securities by insurance affiliates and annuity businesses ......     (8,925)     (5,160)
Dispositions and maturities of investment securities by insurance affiliates
 and annuity businesses ................................................................      6,242       4,359
Other - net ............................................................................     (3,287)     (2,165)
                                                                                           --------    --------
    Cash used for investing activities .................................................    (11,513)     (4,856)
                                                                                           --------    --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in borrowings (maturities 90 days or less) ..................................      4,821       5,579
Newly issued debt  - short-term (maturities 91-365 days) ...............................      2,891       2,098
                   - long-term senior ..................................................     14,362       7,039
Proceeds - non-recourse, leveraged lease debt ..........................................        535        --  
Repayments and other reductions:
                   - short-term (maturities 91-365 days) ...............................    (13,142)    (13,456)
                   - long-term senior ..................................................     (3,610)       (495)
Principal payments - non-recourse, leveraged lease debt ................................       (247)       (186)
Proceeds from sales of investment and annuity contracts ................................      2,066       1,886
Redemption of investment and annuity contracts .........................................     (2,397)     (1,942)
Dividends paid .........................................................................       (526)       (657)
Issuance of preferred stock in excess of par value .....................................         70        --  
Issuance of variable cumulative preferred stock by consolidated affiliate ..............       --           100
                                                                                           --------    --------
    Cash provided from (used for) financing activities .................................      4,823         (34)
                                                                                           --------    --------

DECREASE IN CASH AND EQUIVALENTS .......................................................     (1,898)       (423)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............................................      4,648       3,074
                                                                                           --------    --------
CASH AND EQUIVALENTS AT END OF PERIOD ..................................................   $  2,750    $  2,651
                                                                                           ========    ========
</TABLE>

See Notes to Condensed, Consolidated Financial Statements.

                                        3
<PAGE>
 
ITEM 1.  FINANCIAL STATEMENTS (Continued).

        GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES

              NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.    The accompanying  condensed quarterly financial  statements  represent the
      adding  together  of  General   Electric   Capital   Corporation  and  all
      majority-owned  and  controlled   affiliates   (collectively  called  "the
      Corporation" or "GECC"). All significant transactions among the parent and
      consolidated  affiliates have been  eliminated.  Certain prior period data
      have been reclassified to conform to the current period presentation.

2.    The condensed  consolidated  quarterly financial statements are unaudited.
      These statements  include all adjustments  (consisting of normal recurring
      accruals)  considered  necessary by management to present a fair statement
      of the results of  operations,  financial  position  and cash  flows.  The
      results  reported in these  condensed  consolidated  financial  statements
      should not be regarded as  necessarily  indicative  of results that may be
      expected for the entire year.

3.    Statement  of Financial  Accounting  Standards ("SFAS") No. 130, Reporting
      Comprehensive  Income, was  adopted  as of January 1, 1998. This Statement
      requires reporting  of changes in  share owners' equity that do not result
      directly from transactions with share owners. An analysis of these changes
      follows:

<TABLE>
<CAPTION>
                                                            THREE MONTHS ENDED 
                                                           --------------------
                                                           JUNE 27,    JUNE 28,
(Dollars in millions)                                         1998        1997 
                                                           --------    --------
<S>                                                        <C>         <C>     
Net earnings ...........................................   $    813    $    718
Unrealized gains on investment securities - net ........        157         626
Foreign currency translation adjustments ...............        (25)         (9)
                                                           --------    --------
Total ..................................................   $    945    $  1,335
                                                           ========    ========


                                                             SIX MONTHS ENDED  
                                                           --------------------
                                                           JUNE 27,    JUNE 28,
                                                              1998        1997 
                                                           --------    --------
Net earnings ...........................................   $  1,593    $  1,415
Unrealized gains on investment securities - net ........        160         242
Foreign currency translation adjustments ...............        (33)        (43)
                                                           --------    --------
Total ..................................................   $  1,720    $  1,614
                                                           ========    ========
</TABLE>

                                       4
<PAGE>
 
ITEM 1.  FINANCIAL STATEMENTS (Continued).

4.    In June  1998, the Financial  Accounting  Standards  Board issued SFAS No.
      133,  Accounting for Derivative  Instruments  and Hedging  Activities (the
      "Statement").  The Statement requires that, upon adoption, all  derivative
      instruments (including  certain  derivative  instruments embedded in other
      contracts)  be  recognized in  the balance  sheet at fair  value, and that
      changes  in  such fair values be recognized  in earnings  unless  specific
      hedging  criteria are met.  Changes in the values of derivatives that meet
      these  hedging criteria will ultimately offset related earnings effects of
      the  hedged  items;  effects  of  certain  changes  in   fair   value  are
      recorded in other  comprehensive  income  pending recognition in earnings.
      The  Corporation will  not adopt  the Statement until required to do so on
      January 1, 2000.

                                       5
<PAGE>
 
ITEM  2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS.

OVERVIEW

Net  earnings  for the first half of 1998 were $1,593  million,  a $178  million
(13%)  increase  over  the  first  half  of  1997.  The  results  reflected  the
globalization  and  diversity of the  Corporation's  businesses  and were led by
double-digit  increases  in  Specialized  Financing,   Specialty  Insurance  and
Mid-Market Financing activities.  The Corporation's  contribution to its parent,
General Electric Capital Services, Inc. ("GECS"),  after payment of dividends on
its variable  cumulative  preferred  stock,  was $1,548 million,  a $171 million
(12%) increase over the comparable 1997 period.

Earnings  of the  lending,  leasing  and  equipment  management  businesses  are
significantly  influenced by the level of invested assets, the related financing
spreads (the excess of rates earned -- yields -- over rates on  borrowings)  and
the  quality of those  assets.  Net  earnings  for these  businesses  increased,
primarily from a higher average level of invested  assets and a lower  effective
tax rate.  These  increases  were  offset  in part by  decreased  earnings  from
Consumer Services activities, attributable to the U.S. private-label credit card
and automobile  financing  businesses.  Financing  spreads were essentially flat
compared with the prior year, reflecting slightly higher yields offset by higher
borrowing rates.

The  increase  in net  earnings in the  Specialty  Insurance  segment  reflected
improved  earnings in the mortgage  insurance  business,  the result of improved
market conditions, as well as increases in the other insurance businesses.

OPERATING RESULTS

TOTAL  REVENUES  from all  sources  increased  $4,054  million  (26%) to $19,485
million for the first half of 1998,  compared with $15,431 million for the first
half of 1997.

Revenues from the equipment management,  consumer services, mid-market financing
and specialized  financing  businesses  increased  $3,145 million (22%) over the
comparable  prior-year period. A significant  portion of the increase arose from
sales of goods by the computer  equipment  distribution  businesses,  reflecting
both  acquisition and core growth.  The increase also reflected a higher average
level of invested assets,  resulting principally from acquisitions of portfolios
and  businesses,  as well as increased  premiums  related to the  acquisition of
consumer savings and insurance  businesses in 1997 and 1998.  Revenues were also
impacted by lower losses associated with the Corporation's  equity investment in
Montgomery  Ward Holding Corp.  This impact was largely offset by no counterpart
to a 1997  gain  recognized  on the  sale of an  investment  in the  stock  of a
publicly traded company.  Revenues of the Specialty  Insurance segment increased
$579 million  (50%) to $1,748  million for the first half of 1998  compared with
the first half of 1997. The increase primarily  reflected  increased  investment
income resulting from continued growth in the investment portfolios and a higher
level of gains on investment securities as well as growth in origination volume.
The increase also  reflected  the 1997  contribution  of assets of  Consolidated
Insurance Group, a component of Consolidated  Financial Insurance,  from GECS to
the Corporation.

INTEREST EXPENSE for the first half of 1998 was $4,053 million,  16% higher than
for the first half of 1997. The increase reflected the effects of higher average
borrowings  used to finance  asset  growth  combined  with the effects of higher
average  interest  rates.  The  composite  interest  rate  on the  Corporation's
borrowings for the first half of 1998 was 6.11% compared with 5.99% in the first
half of 1997.

OPERATING AND ADMINISTRATIVE  EXPENSES were $5,350 million for the first half of
1998,  a 29%  increase  over the  first  half of 1997.  The  increase  primarily
reflected costs associated with businesses and portfolios acquired over the past
year and higher investment levels.

INSURANCE LOSSES AND POLICYHOLDER AND ANNUITY BENEFITS increased $454 million to
$2,709 million for the first half of 1998, compared with the first half of 1997.
The  increase  primarily  reflected  the  acquisitions  of consumer  savings and
insurance businesses and higher origination volume, partially offset by improved
market conditions in the mortgage insurance business.

                                       6
<PAGE>
 
ITEM  2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
          OF OPERATIONS (Continued).

PROVISION FOR LOSSES ON FINANCING  RECEIVABLES increased to $740 million for the
first  half of  1998  from  $649  million  for the  first  half of  1997.  These
provisions  principally  related to  private-label  and bank credit cards in the
Consumer Services segment that are discussed below under Portfolio Quality.

DEPRECIATION  AND  AMORTIZATION  OF BUILDINGS  AND  EQUIPMENT  AND  EQUIPMENT ON
OPERATING  LEASES  increased  $122 million (11%) to $1,250 million for the first
half of 1998  compared  with  $1,128  million  for the first  half of 1997.  The
increase was  principally  the result of higher levels of equipment on operating
leases, primarily reflecting acquisition growth and higher aircraft volume.

PROVISION  FOR  INCOME  TAXES was $559  million  for the first  half of 1998 (an
effective  tax rate of 26.0%),  compared with $599 million for the first half of
1997 (an effective tax rate of 29.7%).  The lower provision for income taxes and
the decrease in the 1998  effective  tax rate  resulted  primarily  from certain
tax-advantaged  transactions,  increased  tax credits and  decreases in taxes on
non-U.S. income.

PORTFOLIO QUALITY

FINANCING  RECEIVABLES are the financing segment's largest asset and its primary
source of revenues. The portfolio of financing receivables, before allowance for
losses, increased to $109.3 billion at June 27, 1998, from $106.6 billion at the
end of 1997,  primarily  reflecting  acquisition  growth and higher  origination
volume,  partially  offset by seasonal  decreases in the credit card portfolios.
Related  allowances for losses at June 27, 1998,  aggregated $2.9 billion (2.63%
of receivables - the same as at the end of 1997) and, in management's  judgment,
are appropriate given the risk profile of the portfolio.  A discussion about the
quality of certain elements of the portfolio of financing  receivables  follows.
"Nonearning"  receivables  are those that are 90 days or more delinquent (or for
which  collection  has  otherwise   become  doubtful)  and  "reduced-   earning"
receivables are commercial  receivables  whose terms have been restructured to a
below-market   yield.   The   following   discussion  of  the   nonearning   and
reduced-earning  receivable  balances and  write-off  amounts  excludes  amounts
related to Montgomery  Ward Holding Corp. and  affiliates,  which are separately
discussed below.

CONSUMER  FINANCING  RECEIVABLES,  primarily  credit card and personal loans and
auto loans and leases,  were $48.6 billion at June 27, 1998, an increase of $0.5
billion from the end of 1997.  Nonearning  receivables were $1.1 billion at June
27, 1998,  2.2% of total  consumer  financing  receivables,  compared  with $1.0
billion, 2.2% of total consumer receivables, at December 31, 1997. Write-offs of
consumer  receivables  increased  to $714  million  for the first  half of 1998,
compared  with  $607  million  for the first  half of 1997.  This  increase  was
primarily  attributable to higher average  receivable  balances resulting from a
combination of origination  volume and acquisitions of businesses and portfolios
as well as the effects of higher  delinquencies  at the end of 1997,  consistent
with overall industry experience.

OTHER  FINANCING  RECEIVABLES,  totaling  $60.7  billion at June 27, 1998 ($58.5
billion at December 31, 1997), consisted of a diverse commercial, industrial and
equipment  loan and lease  portfolio.  Related  nonearning  and  reduced-earning
receivables  were $358 million at June 27, 1998,  compared  with $353 million at
year-end 1997.

As discussed in the Corporation's  Annual Report on Form 10-K for the year ended
December  31, 1997,  Montgomery  Ward  Holding  Corp.  (MWHC) filed a bankruptcy
petition for  reorganization in 1997. The Corporation's  recorded  investment in
MWHC and  affiliates  at June 27,  1998,  was $777  million,  a decrease  of $18
million from the end of 1997,  and consisted  primarily of inventory  financing.
Income  recognition  had  been  suspended  on  these   pre-bankruptcy   petition
investments.  Subsequent to the petition,  the Corporation  committed to provide
MWHC up to $1.0 billion in  debtor-in-possession  financing,  subject to certain
conditions,  in order to fund working capital requirements and general corporate
expenses.  A majority of this facility has been  syndicated;  the  Corporation's
loans under this facility at June 27, 1998 were  approximately $92 million.  The
Corporation also provides  financing to customers of MWHC and affiliates through
the Corporation's  wholly-owned  affiliates,  Montgomery Ward Credit Corporation
and Monogram  Credit Card Bank of Georgia.  These  receivables,  which represent
revolving  credit  card  transactions   directly  with  customers  of  MWHC  and
affiliates,  aggregated  approximately $3.6 billion at June 27, 1998,  including
$1.7 billion that have been sold with recourse by the Corporation's  affiliates.
The obligations of customers with respect to these  receivables are not affected
by the bankruptcy  filing.  MWHC and its affiliates,  under new management since
1997, are continuing their restructuring efforts as well as developing a plan of
reorganization.

                                       7
<PAGE>
 
ITEM  2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
          OF OPERATIONS (Continued).

The Corporation held loans and leases to commercial  airlines  amounting to $9.6
billion at June 27, 1998, up from $9.0 billion at the end of 1997.

                                       8
<PAGE>
 
                                                                      EXHIBIT 12
<TABLE>
<CAPTION>

        GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES

                COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                       AND
           COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
                          AND PREFERRED STOCK DIVIDENDS

                         SIX MONTHS ENDED JUNE 27, 1998
                                   (Unaudited)


                                                                      RATIO OF
                                                                       EARNINGS
                                                                          TO   
                                                                       COMBINED
                                                                         FIXED 
                                                           RATIO OF     CHARGES
                                                           EARNINGS       AND  
                                                             TO       PREFERRED
                                                            FIXED        STOCK 
(Dollar amounts in millions)                               CHARGES    DIVIDENDS
                                                           --------    --------
<S>                                                        <C>         <C>     
Net earnings ...........................................   $  1,593    $  1,593
Provision for income taxes .............................        559         559
Minority interest in net earnings of consolidated
 affiliates ............................................         21          21
                                                           --------    --------
Earnings before provision for income taxes and
 minority interest .....................................      2,173       2,173
                                                           --------    --------
Fixed charges:
  Interest .............................................      4,121       4,121
  One-third of rentals .................................        131         131
                                                           --------    --------
Total fixed charges ....................................      4,252       4,252
                                                           --------    --------

Less interest capitalized, net of amortization .........         40          40
                                                           --------    --------
Earnings before provision for income taxes and minority
 interest, plus fixed charges ..........................   $  6,385    $  6,385
                                                           ========    ========

Ratio of earnings to fixed charges .....................       1.50
                                                           ========


Preferred stock dividend requirements ..................               $     45
Ratio of earnings before provision for income taxes to
 net earnings ..........................................                   1.35
Preferred stock dividend factor on pre-tax basis .......                     61
Fixed charges ..........................................                  4,252
                                                                       --------
Total fixed charges and preferred stock dividend
 requirements ..........................................               $  4,313
                                                                       ========
Ratio of earnings to combined fixed charges and
 preferred stock dividends .............................                   1.48
                                                                       ========
</TABLE>


For purposes of computing the ratios,  fixed charges  consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.

                                       9
<PAGE>
 
                           PART II--OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

     a.  EXHIBITS.

         Exhibit 12.  Computation of ratio of earnings to fixed charges and
                      computation of ratio of earnings to combined fixed
                      charges and  preferred stock dividends.

         Exhibit 27.  Financial Data Schedule (filed electronically only).


     b.  REPORTS ON FORM 8-K.

         None.

                                       10
<PAGE>
 
                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                     GENERAL ELECTRIC CAPITAL CORPORATION
                                     ------------------------------------
                                                (Registrant)


Date:  July 31, 1998             By:          /s/ J.A. Parke
                                     ------------------------------------
                                                J.A. Parke,
                                       Senior Vice President, Finance
                                       (Principal Financial Officer)


Date:  July 31, 1998             By:          /s/ J.C. Amble
                                     ------------------------------------
                                                J.C. Amble,
                                        Vice President and Controller
                                        (Principal Accounting Officer)



                                       11
<PAGE>
 
        GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES

                                INDEX TO EXHIBITS


EXHIBIT NO.                                                          PAGE
-----------                                                        --------

    12       Computation of ratio of earnings to fixed charges
             and computation of ratio of earnings to combined
             fixed charges and preferred stock dividends .......       9

    27       Financial Data Schedule (filed electronically only)


                                       12