Q. What are the parameters of lease finance at the SBI?
The bank typically undertakes leasing contracts worth a minimum of Rs 5 crore. However, it is generally restricted to 50 per cent of the total net worth of the lessee. Usually, lease assistance is considered for Greenfield projects promoted by reputed industrial groups.
Q. What are the tenors for SBI provides lease finance?
At the SBI, lease contracts are usually structured for a tenor of 5 to 7 years. However, longer periods are considered in select cases.
Q. What is the cost structure of lease contracts structured at the SBI?
The lease finance charge is usually a variable rate linked to the banks medium term lending rate, and is charged on the funds disbursed before the delivery of the asset to the lessee.
The lease management fee is normally one per cent of the lease amount sanctioned and is payable at the time of execution of documents. Lease rentals are payable after the delivery of the asset for the lease period.