Leasing is a contractual agreement granting the use of some capital asset for a specified time in exchange for an agreed upon payment amount. A lease can be favourable compared to outright purchasing due to different payment schedules and tax basis handling. In September 1990, HNB became the first private bank to introduce leasing. Since then, the Bank's leasing business has grown steadily.
WHAT CAN BE LEASED
VEHICLES
Cars/ Jeeps/ Double cabs/ SUV's
Lorries, Trucks
Vans
Bowsers
Buses
Tractors and Trailers
PLANT, MACHINERY & EQUIPMENT
Machinery for manufacturing industries including, Food Processing, Printing & packaging, apparel etc.
Machinery for the plantation sector
Medical Equipment for Hospitals
Equipment for tourism and leisure industry.
Construction machinery such as Excavators, Backhoe Loaders, Forklifts, Bulldozers, Cranes, Tippers & Mixers etc.
Waste Management & Pollution Control Equipment
Office equipment including Computers, Fixtures & Fittings
WHO CAN LEASE ?
Professionals
Sole Proprietorships
Partnerships
Limited Liability Companies
BOI Companies
ADVANTAGES IN LEASING
Equity contribution by lessee is minimal
No transaction cost.
Fast credit processing channel.
Simple documentation.
Full use of the asset without ownership.
Fixed rental schemes to suit the budget and ease cash flows.
Up to 100% financing for qualified lessees.
Leasing can be structured to obtain maximum tax benefits.
Obsolescence Protection.
Leasing is cheaper than other types of credit:
No documentation fees
No legal fees
No VAT on purchase price
With HNB, you get further advantages:
Leasing services are available through the entire branch network.
The lessee does not have to be an existing account holder of the Bank to qualify for a lease facility.
Leases could be obtained for large scale machinery or for small and medium scale equipment/ vehicles.
In addition to leasing, other financial facilities can be obtained under one roof.
Foreign currency leases can be obtained.
Value additions are offered when vehicle leasing facilities are obtained which include a free life insurance cover worth 1.2 mn from HNB Assurance and a free Credit Card from HNB.
NOW HNB LEASING OFFERS GREAT BONANZA FOR REGISTERED VEHICLES
With the introduction of higher taxes for Brand New and Reconditioned vehicles the tendency to Lease Registered vehicles have increased. In keeping with the demand, HNB Leasing has widened it's horizon to accommodate vehicles registered during the 07 preceding years. Accordingly the quantum of lease provided from the Valuation price of such vehicles are as follows,
Date of first registration
Maximum to be granted on Market value of the vehicle
Within last 6 months
85%
Above 06 months and within 03 years
70%
Above 03 years and within 05 years
60%
Above 05 years and within 07 years
50%
All prices & rentals are inclusive of VAT and conditions apply.
FREE Life Insurance Cover of Rs 1.2 Mn and a FREE Credit Card.
“Zero” interest easy payment of Insurance premiums for HNB Credit Card Holders.
Lease rentals can be tailor made according to individual requirements.
