Q. What types of assets are financed?
A. Any type of equipment and machinery for any industrial plants, office process up gradation, medical equipments, transportation etc. are eligible for equipment leasing.
Q. Who chooses the Asset?
A. Client makes the decision about deciding equipment, vendor, terms and conditions including price.
Q. What is the Lease term?
A. Lease term means the non-cancelable period during which you can use the leased equipment exclusively. Generally it ranges from 3 to 5 years.
Q. Who bears the cost of opening the L/C or other related charges?
A. The actual purchase price and other incidental expenses including financial expenses and all bank charges shall constitute the acquisition cost and would be capitalized at the time of execution.
Q. What is lease rental?
A. Lease rental is the periodical payments made after the lease execution. The period can be monthly, quarterly and semi-annually according to the client's need.
Q. What is Agreement and execution?
A. Lease Agreement consists of the negotiated terms and estimated acquisition cost. The lease is executed when the delivery or installation of the equipment is completed. At the time of execution the actual payment schedule is fixed and you are required to start paying the rental.
Q. Who pays for the insurance cost?
A. You are required to arrange the insurance coverage on the leased equipment for the entire lease term.
Q. Who is responsible for proper maintenance of the equipment?
A. The client is required to maintain the leased equipment in good operating condition, even if the insurance covers most of the unusual risks.
Q. What happens at the expiry of lease term?
A. At the expiry of lease term, the ownership of the leased asset will be transferred in the client's name at a minimum cost. |
