SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    ---------

                                    FORM 10-K

                        FOR ANNUAL AND TRANSITION REPORTS
                     PURSUANT TO SECTIONS 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
(Mark One)

[ X ]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE 
       ACT OF 1934 [FEE REQUIRED]

For the fiscal year ended December 31, 1997

                                       OR

[   ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
       EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

For the transition period from _______ to __________

                        Commission file number: 000-22959

                        CIT HOME EQUITY LOAN TRUST 1997-1
             (Exact name of registrant as specified in its charter)

            Delaware                                    51-0374926
   (State or other jurisdiction of                   (I.R.S. Employer
    incorporation or organization)                  Identification No.)

      c/o The CIT Group Securitization Corporation III
      650 CIT Drive
      Livingston, New Jersey                                        07039
      (Address of principal executive offices)                    (Zip Code)

Registrant's telephone number, including area code:  (973) 740-5000

Securities registered pursuant to Section 12(b) of the Act:

                                      None
                                (Title of Class)

Securities registered pursuant to Section 12(g) of the Act:

                                      None
                                (Title of Class)

      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 [ ]

      Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K.
[   ]



<PAGE>


                                     PART I

Item 1.  Business.
         --------

         On July 23,  1997 The CIT  Group  Securitization  Corporation  III (the
"Company") sold $90,000,000  aggregate principal amount of Class A-1 5.93% Asset
Backed Certificates;  $36,000,000  aggregate principal amount of Class A-2 6.17%
Asset Backed Certificates;  $61,000,000  aggregate principal amount of Class A-3
6.25% Asset Backed Certificates; $40,000,000 aggregate principal amount of Class
A-4 6.37% Asset Backed Certificates;  $15,000,000  aggregate principal amount of
Class A-5 6.55%  Asset  Backed  Certificates;  $15,000,000  aggregate  principal
amount of Class A-6  6.67%  Asset  Backed  Certificates;  $33,000,000  aggregate
principal  amount of Class  A-7 6.95%  Asset  Backed  Certificates;  $30,000,000
aggregate  principal  amount  of Class  A-8  6.65%  Asset  Backed  Certificates;
$90,000,000  aggregate  principal amount of Class A-9 Variable Rate Asset Backed
Certificates;  $30,000,000  aggregate  principal amount of Class M-1 6.85% Asset
Backed Certificates;  $32,500,000  aggregate principal amount of Class M-2 7.10%
Asset Backed Certificates;  and $22,500,000  aggregate principal amount of Class
B-1 7.45% Asset Backed Certificates (the "Certificates").  The Certificates were
offered for sale to the public  pursuant to a Prospectus  Supplement  dated July
16, 1997 to a Prospectus dated April 8, 1997 (the "Prospectus").

         The Certificates  represent the entire beneficial ownership interest in
CIT Home Equity Loan Trust 1997-1 (the "Trust").  The Trust was created, and the
Certificates were issued,  pursuant to a Pooling and Servicing Agreement,  dated
as of July 1, 1997 (the "Pooling and Servicing Agreement"),  between the Company
and The Bank of New York, as trustee (the "Trustee").

         The  Trust's  only  business  is to act as a passive  conduit to permit
investment in a pool of retail consumer receivables.

Year 2000 Compliance
--------------------

         The  Year  2000  compliance  issue  arises  out  of  the  inability  of
computers,  software and other equipment utilizing  microprocessors to recognize
and properly process data fields  containing a 2 digit year. In response to this
issue,  The  CIT  Group/Sales  Financing,  Inc.  ("Servicer")  has  developed  a
comprehensive  project to ensure that its software  applications and systems are
Year 2000 compliant. The scope of this project includes, among other things, the
assessment  of  "at  risk"  applications  and  systems,  an  assessment  of  the
interdependencies  of various systems and the relative importance of each system
to the business,  the design and execution of required  modifications to achieve
Year 2000 compliance,  and the plans for testing of modifications to verify Year
2000 compliance.  The Servicer expects to complete  substantially  all Year 2000
remediation  and testing by the end of the first quarter of 1999. The Servicer's
ability to meet this  timetable is in part  dependent  upon the ability of third
parties,  such  as  software  vendors  and  developers,  to  meet  their  stated
deadlines.  In addition, the Servicer is communicating with other third parties,
including vendors, borrowers and obligors, to determine the status of their Year
2000 compliance efforts in an effort to reduce the Servicer's potential exposure
to such third  parties'  Year 2000 issues.  While the Servicer has made and will
continue to make certain  investments  related to this  project,  the  financial
impact to the Servicer of such  investments has not been, and is not anticipated
to be, material to its financial position or results of operations.


Item 3.  Legal Proceedings.
         -----------------

         The Registrant knows of no material legal proceeding with respect to or
involving the Trustee, the Company or CITCF.


Item 4.  Submission of Matters to a Vote of Security Holders.
         ---------------------------------------------------

         No matter  was  submitted  to a vote of  Certificateholders  during the
fiscal year covered by this report.

<PAGE>

                                     PART II


Item 5.  Market for Registrant's Common Equity and Related Stockholder Matters.
         ---------------------------------------------------------------------

         Other than one Class R Certificate No. R-1, the  Certificates  are held
and delivered in book-entry form through the facilities of The Depository  Trust
Company ("DTC"),  a "clearing agency"  registered  pursuant to the provisions of
Section 17A of the Securities Exchange Act of 1934, as amended.

         As of January 5, 1998, 100% of the Class A-1 Certificates  were held in
the nominee name of Cede & Co. for 12 beneficial  owners,  100% of the Class A-2
Certificates  were  held in the  nominee  name of Cede & Co.  for 12  beneficial
owners, 100% of the Class A-3 Certificates were held in the nominee name of Cede
& Co. for 24 beneficial owners,  100% of the Class A-4 Certificates were held in
the nominee  name of Cede & Co. for 7 beneficial  owners,  100% of the Class A-5
Certificates were held in the nominee name of Cede & Co. for 1 beneficial owner,
100% of the Class A-6  Certificates  were held in the nominee name of Cede & Co.
for 5 beneficial  owners,  100% of the Class A-7  Certificates  were held in the
nominee  name of Cede & Co.  for 6  beneficial  owners;  100% of the  Class  A-8
Certificates  were  held in the  nominee  name of  Cede & Co.  for 4  beneficial
owners; 100% of the Class A-9 Certificates were held in the nominee name of Cede
& Co for 6 beneficial  owners;  100% of the Class M-1 Certificates  were held in
the  name  of  Cede  & Co.  for 9  beneficial  owners;  100%  of the  Class  M-2
Certificates  were  held in the  nominee  name of  Cede & Co.  for 6  beneficial
owners;  and 100% of the Class B-1 Certificates were held in the nominee name of
Cede & Co. for 1 beneficial  owner.  As of July 23, 1997, one Certificate in the
amount of $5,000,000.00 was held by Teachers  Insurance and Annuity  Association
as  registered  owner and one  Certificate  was held in the form of a definitive
Certificate by an affiliate of the Company.


Item 9.  Changes in and Disagreements with Accountants on Accounting and 
         ---------------------------------------------------------------
         Financial Disclosure.
         --------------------

         None.


                                    PART III

Item 12. Security Ownership of Certain Beneficial Owners and Management.
         --------------------------------------------------------------

         Not Applicable.




                                     PART IV


Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.
         ----------------------------------------------------------------

             (a)      Exhibits:
                      --------   

        Exhibit Number                              Description
        --------------                              -----------

            19                  Annual Accountants' Report with respect to the
                                servicing of the loans by the Master Servicer, 
                                pursuant to the Pooling and Servicing Agreement.

            99.1                Annual Officer's Certificate.

            99.2                Management's Assertion.

            99.3                1997 Annual Statement of Trust.

<PAGE>




             (b)      Reports on Form 8-K:
                      -------------------   

                      Current  Reports  on  Form  8-K are  filed  each month.  
                      The reports include as an exhibit, the Monthly Reports to
                      Certificateholders.  Current Reports  on  Form  8-K dated
                      August 15,1997, September 15, 1997,  October 15, 1997,  
                      November17, 1997, December 15, 1997 and January 15, 1998
                      were  filed  with the  Securities  and  Exchange
                      Commission.

              (c), (d)          Omitted.


<PAGE>



                                   SIGNATURES
                                   ----------

     Pursuant to the requirements of Section 13 or 15(d) 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.




                                       CIT HOME EQUITY LOAN TRUST 1997-1
                                       (Registrant)

                                       By: The CIT Group/Consumer Finance, Inc.,
                                           as Master Servicer


Dated:  March 13, 1998                 By:     /s/ Frank J. Madeira
                                               ----------------------------   
                                       Name:   Frank J. Madeira
                                       Title:  Vice President