What is leasing?

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.

House Building Finance

Q: What is the maximum amount of loan I can borrow?

A: PFIL provides Housing loan up to maximum 50% of the Construction / Extension Cost of a House. The maximum loan you can borrow is Tk. 20 lac for purchase of apartment/flat under Bangladesh Bank Refinancing Scheme.

Q: How will PFIL decide the loan amount I am eligible for?

A: Subject to the maximum loan limit as mentioned above, your Repayment Capacity as assessed by PFIL will determine the loan amount you can borrow. While providing Housing Loan. PFIL wants to ensure that you can comfortably and regularly repay the Loan amount you borrow.

Q: When can I make an Application for Housing Loan?

A: You can apply for Housing Loan at any time after you have decided to buy / construct / extend a House / Flat/ Housing Plot.

Q: How do I make an application?

A: Please complete the PFIL prescribed Application Form and submit it along with supporting documents. On receipt of the completed Application Form along with the processing fee. We will process your application, make such enquires as if deems necessary and convey our decision to you at the earliest.

Q: What is the Fees payable and when are these payable?

A: Please contact any of the PFIL Offices for the Processing Fees and Loan Fees currently applicable to avail PFIL Housing Loan. Loan related fees are subject to 15% VAT and minimum service charge -10000. Please note that payment of all Fees must be made through “A/C Payee” Cheques in favors of “Phoenix Finance & Investments Ltd.

Q: What is the Rate of Interest that will be charged on my loan?

A: Please Contact any of the PFIL Offices for the Interest Rates currently applicable for PFIL Housing Loan.

Q: Is the Rate of Interest fixed for the entire duration of the loan?

A: The Rate of interest is adjustable during the loan period, depending on major changes in money market condition. PFIL reserves the right to change the rate of interest.

Q: When can I draw the loan?

A: You can draw down the loan after a site visit, all legal documentation has been completed and you have invested your own contribution in full. Your own contribution is the total cost less PFIL Housing Loan.

Q: In what form can I make payment to PFIL?

A: All kinds of payments against fees, charges, interest, and installment should be made by Cheque marked “A/C Payee Only” drawn on a bank in Dhaka/ Chittagong city by Pay Order or by Demand Draft drawn in favor of “Phoenix Finance & Investments Ltd”.

Q: Will PFIL finance persons of Bangladeshi origin holding foreign passports?

A: Yes, But subject to restrictions, if any, of the Government of Bangladesh.

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