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Lease Finance
Q: What is Leasing?
A: Leasing is a contractual agreement between the two parties whereby one acquire the right to use the property and the other allows the former the right to use his owned property in consideration of payment of rental.
Q: Who is the Lessee and who is the lessor?
A: The lessee is the client and the user of the assets under the lease contract and lessor is the Financing Company and owner of the assets.
Q: Who can avail a lease?
A: Any Individual, Servicemen, Businessmen, Corporate House can avail a lease.
Q: Who is the Lessee and who is the lessor?
A: The lessee is the client and the user of the assets under the lease contract and lessor is the Financing Company and owner of the assets.
Q: Who chooses the Asset?
A: Client makes the decision about the Price, Quality, Brand and Supplier of the asset.
Q: What kind of equipment can you get financing for?
A: Any sort of movable asset that falls under the category of equipment.
Q: What is the Lease term?
A: Lease term means the 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 client bears the cost of opening L/C.
Q: What is lease rental?
A: Lease rental is the periodical payments made against the use of an asset. The period can be monthly, quarterly and semi- annually according to the client’s need.
Q: Who is responsible for proper maintenance of the equipment?
A: The client (lessor) is responsible to maintain the leased equipment in good operating condition at his own cost.
Q: Is there any fixed date for rental payment?
A: Usually rental payment dates are fixed on three different days of the month. PFIL offers 5th, 15th and 25th of the month as rental payment date.
Q: What is moratorium period?
A: This is the period in which you do not have to pay rental. The period will depend on the type and implementation schedule of the project. Normally this will be maximum of six months from the date of first disbursement.
Q: Shall I have to pay interest in the moratorium period?
A: Yes, you have to pay interest on the moratorium period. You can avoid paying interest, if you start paying rental immediately after disbursement of fund.
Q: Can I sublease the leased asset?
A: No, this is not permissible under usual terms of lease.
Q: Is it mandatory to provide security for lease finance?
A: Not always PFIL is fully flexible regarding the security. Depending on the type of investment and credit risk security is finalized.
Q: Is it mandatory to provide my credit status?
A: Yes, Credit status of an applicant must be unclassified. A report in this regard will be collected from Credit Information Bureau of Bangladesh Bank before disbursement.
Q: Is there any bar for early repayment of the finance?
A: There is no bar for early repayment of the lease. In that case, termination value will be the balance rental discounted at a predetermined rate below the rate fixed as facility rate and a lump sum fee.
Q: What happens at the expiry of lease term?
A: At the expiry of lease term, the ownership of the lease asset can be transferred in your name at a minimum cost.
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