Financial Institutional services concept Financial Service

Lease finance:

            Lease is a form or contact transferring to a capital is a financial device which has developed rapidly designing that 1960’s and 1970’s in the US and India just before the middle of the 19080 if is a Tran of financing employed to achieve the use of assets of short period of time with out owing it every lease involves two parties. The asset of the assets known as leagues the owner of the asset known a leaser.

            Lease financing systemization include product sector more banking financial companies non product sector manufacturing companies all India and state level financial institutions subsidiaries of bond and other system.

Types of lease:

●      Operating lease

●      Financial lease

●      Direct lease

●      Leveraged lease

●      Hire purchase

Operating lease:

The operating lease is a short term lease when can called by giving proper notice at the option of  the lease.

Ex : short term lease.

Financial lease:

The financial lease is non cancelable contract actual commitment on the port of cease to make a services of payments to the lesser for the use of an asset If may be cancelled if the leaser is rein forced for any leaser the lease payment is fixed obligation which is not net. Will lead of finance in solvency of the lease the financial lease make take the following forms.

Sale and lease back:

In this case the firm sales assets it owners to another party which lease to back the forms.

Direct lease:

Here a company acquires the use of an assets directly from the in the manufacturer.

Coverage lease:

In these case three parties not the usually two are involved in the economical the 3 parties are the covered the lender.

The leaser acquires the asset by part equities investment and part borrowing on long term basic the load is by a manager of the asset as will as by the assigned of the lease payments and if possible by a guarantee form the lease to the lender.

Hire purchase finance:

Hire purchase as a form of the financing differ form lease financiers hire purchase credit is defined as system under which terms forms for purchase of goods.

And service are owned to be fractionally liquidated through a contractual obligation the goods were purchase are turns of financial mas be conserve goods to produce goods hire purchase credit may be provided by the sellers him self or by any financial institution when the seller provides such credit his sources of funds may be capital or borrowing from certain financial institutions such a banks and sales finance companies have now entered the business of hire purchase finance.

In addition to financing sellers financial institutions may finance the buyers the directly these may either 2 forms.

Cash installment credit:

Cash installment credit under which cash in made directly available the who repays in the from of installments ever a given paid.

Commodity installment credit:

Commodity installment credit under which the buyer is allowed to purchases goods of his choices and finance institution opened an account in his name are collects cash ever a period.

Hire purchase credit it available in India. For a wide range of products successive products like auto mobiles services mahanism, reformance , TV sets, machinery services like aviation all fee and medical fees are now financial.

Sources of hire purchase:

The sources of funds are these component are mainly deposits from public and other borrowing  with the development of growth facilities it has been made for companies.

Terms of hire purchases:

Credit vary from product to product down payment varies between 10 to 25%  and may something be even 40% as the commercial are on centered it is 20%  for new case and 30% for second vehicles.

Housing finance:

It is one of the basic necessity of the non and there is a agent need and scope for the development of arrangements for supplies loans of  finance for the purpose as house constructions how ever for some reason or other the shelter sector of the till the end if lags in the recent post the authorities have instead the certain steps to bridge this gap.

Finance for having for provided for against the form of mortgage loans it is provided for against the form of mortgage loans it is provided on the security of immovable properties of land and the building the supplies product of house mortgage loans in India are the housing and order mortgage loans in India developed bond the appearance co-operation housing finance polities and house of boards in different states control and state govt LIC commercial banks.

Suppliers of house mortgage loans in India:

[HUDCO]: it is an important institution in this area it was set up in April 1970 with the special purpose of providing loans for shelter it loans been financing humans product for located in the areas where there is a taken demand not only house but also are to the house and the maturity period.

            Of it concerns if between 8-10years it may be hooted that [55%] of HUDCO loans are moral group families 15% of total loans commercialized for rural areas.

SHFS: state housing finance societies:

            SHFC constitute another major sources of found in the residential mortgage layout. These societies advance loans to the affiliated primary co-operation having societies for construction of house purchase of land improvement to existing house purchase of have maturity period variance from is to 30 years but 20 to 25 years to concern cue the rate charged is the bond rate plus 3% or the borrowing rate plus 1 to 3 %.

HDFC:

Housing development finance corporation limited has been facing an important role in meeting of housing firm requirements. The HDFC setup in 1977 through where liked up with planned saving while 30% the loan continued was 70% of the cost of the house in this some saving point was  30% the loans potion was 70% of the cost of the house it disconnected some saving plan scheme from march 1993 because if has unable.

●      Deposits collected through various deposits

●      Domestic loan term finds from commercial banks

●      International and financial institutions long terms loans from international institutions.