Prime Bank provides one of the most convenient long term sources of loans in the industry for acquiring capital machineries and equipments under lease financing. It is a very popular scheme whereby a customer is given the opportunity to have an exclusive right to use an asset, usually for an agreed period of time, against payment of installments.

Prime Bank offers lease finance facility against the following items:

The customers have the right to decide and select machinery/equipment or vehicles, its specification and model, as well as negotiate the price with the manufacturer/supplier. Bank will purchase the item(s) in accordance with the specifications given by the customers. The price should be competitive and acceptable to the Bank.

Entrepreneurs having adequate experience and expertise are eligible to apply for lease finance under the scheme. Lease Finance facility may provide 100% cost of the equipment, according to the merit of the proposal. But in most of the cases the bank ensures minimum equity participation by the customer.

After having favorable discussion on the various aspects of the Project particularly on the terms and conditions of lease financing, a customer may formally apply in specific application form designed by the Bank. The customer is required to provide detailed information on the project and its various aspects. After proper appraisal, if found suitable, Bank will draw terms and conditions of the lease and sanction thereafter.

After sanction of a proposal for lease finance, a lease agreement will have to be executed between the customer and the bank. After execution of the agreement, the bank will purchase the specified item and the customer will be under obligation to accept the equipment for the specified lease period.

Some fees and charges such as, risk fund, supervision fee, project examination fee and transfer fee are normally charged at a little percntage for offering Lease Finance facility to the customers.