Q. What is a Financial Lease?
Q. Is finance lease an Islamic instrument?
Q. What is OLP’s competitive edge over other leasing companies?
Q. What are the criteria for inducting customers in OLP’s portfolio?
Q. What is the rental?
Q. What is Security Deposit?
Q. What is Residual Value?
Q. What are the terms and conditions offered by OLP?
Q. Can balloon payments be made during the lease to entail the seasonal affect? Similarly, can payments be lowered in the off-season?
Q. Can second-hand assets also be leased?
Q. Can a lessee cancel or terminate the lease contract early?

 

Q. What is Financial Lease?
A. A lease wherein the user can acquire the use of the asset for most of its useful life and pay rentals to the lessor is called a financial lease. The user will be responsible for maintenance of the equipment and the payment of taxes and insurance

Q. Is finance lease an Islamic instrument?
A. Yes, leasing is an Islamic mode of financing and is approved by Islamic ideology council of Pakistan.

Q. What is OLP’s competitive edge over other leasing companies?
A. OLP offers wide range of financial services with competitive pricing and flexible terms. OLP marketing team is customer friendly and the lease process moves at fast speed. OLP offers Finance Lease, Auto & Consumer Lease, Operating Lease, Working Capital, Factoring, Agriculture & Micro Loans. OLP has presence in over 26 cities of Pakistan which gives a much wider coverage and service to its customers.

Q. What are the criteria for inducting customers in OLP portfolio?
A. OLP niche market is Small Medium Enterprises (SME). Commercial entities are evaluated as per prescribed regulations of Security Exchange Commission of Pakistan (SECP) and internal guide lines of OLP. These regulations and guide lines are user friendly and compatible with the local practices and laws. ORIX normally deals only with organizations which have a successful track record of three years of operations.

Q. What is the rental?
A. Rent is an amount which is paid by the lessee for the leasing of equipment through out the entire lease term. The rent can be monthly or quarterly and can be paid at the beginning or end of month or quarter. Rent paid is allowed to be charged as a tax deductible expense in the profit and loss statement of the lessee.

Q. What is the Security Deposit?
A. The security deposit refers to equity contributed by lessee in lease transactions. The security deposit is adjusted towards Residual value at the end of lease term.

Q. What is Residual value?
A. Residual value is an approximate fair future market value of the equipment determined at the start of the lease term.

Q. What are the terms and conditions offered by OLP?
A. OLP offers highly competitive terms with a very rapid response and superior quality service to its customers. The lease period ranges from 3, 4 and 5 years. The payment mode is monthly and quarterly. Further details can be obtained from our staff on telephone or through personal visit.

Q. Can balloon payments be made during the lease to entail the seasonal affect? Similarly, can payments be lowered in the off-season?
A. OLP offers a flexible repayment schedule and can incorporate balloon payments and off-season payments in the scheduled repayment plan.

Q. Can second-hand assets also be leased?
A. OLP leases brand new equipments as well as those which are reconditioned and imported for use in Pakistan for the first time. OLP would require independent survey for price verification.

Q. Can a lessee cancel or terminate the lease contract early?
A. A finance lease is non-cancelable but may be terminated early subject to a tax compensation payment to the lessor if the remaining lease term is less than 36 months.

Auto Leasing - FAQs

Q. What is the interest rate?
Q. What is rate of insurance and through which company it is covered?
Q. Can ORIX lease recondition cars, if yes then till what model?
Q. What is the difference between leasing and financing via banks?
Q. What are the benefits of availing the leasing facility through ORIX?

Q. What is the interest rate?
A. The interest rate varies according to the leasing terms and conditions. The offered rate will be fix for the entire leasing term and will base on prevailing KIBOR (Karachi Inter Bank Offer Rate)

Q. What is rate of insurance and through which company it is covered?
A. Insurance is covered through the well-reputed companies of Pakistan. Insurance policy is fully comprehensive and non-deductible. The insurance rates vary between 4% to 5%. Instead of annual lump sum payment, the premium is payable in the shape of monthly rents.

Q. Can ORIX lease recondition cars, if yes then till what model?
A. ORIX does provide an option for leasing out reconditioned vehicles. The vehicle should just only be first owner and, if registered then, registration should not be older than five years.

Q. What is the difference between leasing and financing via banks?
A. In financing the vehicle is registered in the name of borrower and is hypothecated in the name of bank while incase of leasing the vehicle is solely registered in the name of leasing companies. Financing can be done for as low as for one year but leasing has to be of minimum for three years.

Q. What are the benefits of availing the leasing facility through ORIX?
A. ORIX Leasing Pakistan Limited offers an extensive array of benefits to the prospect clients. We provide lease with satellite tracking device option and monitoring charges for the entire leasing term. Lessee will also be benefited with the complementary life insurance coverage. The lease contract will be based on the fix rate, which will not be revised till the contract expiry.