BANK FINANCE & LENDING NORMS FOR LEASING & HIRE PURCHASE CONCERNS

Ø What is Lease?

Ø Parties to a Lease Agreement

Ø Lease Vis‑a‑Vis Hire Purchase

Ø Type of Leasing

- Operating Lease

- Financial Lease

- Sales and Lease Back Leasing

- Sales‑Aid‑Lease

Ø Advantages of Leasing

Ø Disadvantages of Leasing

Ø Regulations relating to Non‑Banking Financial Companies (NBFCs)

Ø Non‑Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998

Ø Bank Finance to Equipment Leasing (EL) Companies

Ø No Bridge Loan/Interim Finance to Equipment Leasing & Hire Purchase Companies

Ø Sanction of Credit Under Different Nomenclature

Ø CMA Data Base Forms

Ø Hire Purchase Concerns

Ø Exposure Norms of Banks to Leasing and Hire Purchase Activities

Ø Appendix 18.I Form I: Particulars of the Existing Limits from the Banking System/Financial Institutions

Ø Appendix 18.II Form II Operating Statement

Ø Appendix 18.III Form III Analysis of Balance Sheet

Ø Appendix 18.IV Form IV: Assessment of Maximum Permissible Ban Finance for Working Capital

Ø Appendix 18.V Form V: Funds Flow Statement