Leasing means the business of letting or sub-letting movable property on hire for the purpose of the use of such property by the hirer/lesee or any other person in the business.
This is an agreement between the lessee and the lessor, where the lessor agrees to finance a structured repayment of the value of an asset with the option of purchase at the end of the lease period. The asset purchased serves as the collateral for such facilities while the title of such asset reverts back to the lessee after full and final servicing of all obligations on the lease agreement by paying a token. This type of facility is available for individuals, Enterprises and corporate organizations.
The intention is for the user to return the equipment without the option of purchase at the end of the lease period. The cost of the equipment is not sought to be fully recovered by the Lessor during the primary period of the lease. This is usually for a period that is significantly shorter than the economic life of the equipment. The lease can be cancelled at any time, before the end of the tenor, by either party depending on the terms and conditions agreed by both the lessor and lessee.