Lease means a contractual relationship between the owner of the asset and its user for a specified period against mutually agreed upon rent. The owner is called the Lessor and the user is called the Lessee. Lease finance is one of the most convenient source of financing of assets viz machinery, equipment vehicle, etc. The user of the assets i.e. Lessee is benefited through tax advantages, conserving working capital and preserving debt capacity. Moreover, Lease is an off-balance sheet item i.e lease amount is not shown in the balance sheet of the lessee and does not affect borrowing capacity. Leasing enables the lessee to avail the services of a plant or equipment without making the investment or incurring debt obligation. The Lessee can use the asset by paying a series of periodic amounts called "lease payment" or "lease rentals" to the owner of the asset at the predetermined rates and generally in advance. The payments may be made monthly or quarterly. Jamuna Bank Ltd., the highly capitalized private Commercial Bank in Bangladesh has introduced lease finance to facilitate funding requirement of valued customers & growth of their business houses.

LEASE ITEMS ·

Vehicles like luxury bus,Mini bus ,Taxi cabs cars, Pick-up, CNG three wheeler etc .

Factory equipment.

Medical equipment ·

Machinery for Agro Based Industry ·

Construction equipment ·

Office equipment ·

Generators, Lift & Elevators for commercial place.

Sea or River Transport.

Computer for IT Education Center.

Vehicles like luxury bus, Mini bus ,Taxi cabs, Cars, Pick-up, CNG three wheeler etc . (New)	Up to 4
Factory equipment.	,, 5
Medical equipment.	,, 5
Machinery for Agro Based Industry	,, 5
Construction equipment.	,, 3
Office equipment	,, 3
Generators, Lift & Elevators for commercial place.	,, 3-5
Sea or River Transport.	,, 4
Computer for IT Education Center.	,, 2-3

Maximum Limit: 70% of the acquisition cost.

Security / Collaterals

Following securities are acceptable : * Ownership of leased assets (i.e. the leased assets will remain in the name of the Bank) In addition the following collaterals are acceptable to the Bank. · Collateral securities in the form of land & building / Fixed Deposits / Other Cash Collateral/ Wage Earners Development Bond having liquidation value covering at least 100% of the amount of finance. · Deposit of listed "A" Category shares, National Savings Certificates, ICB Unit Certificates, assignment of Life Insurance Policies, Bank/Insurance Guarantee will also be acceptable as collateral securities. · Creation of charge on the Fixed Assets of the existing industrial units requiring BMRE. Creation of charge on the existing vehicle will also be acceptable as securities.

Charges

Bank charges are modest and competitive. Lease Deposit Before disbursement of lease finance, the Lessee shall have to deposit 3 months' rentals (non-interest bearing) in advance which will be adjusted at the end of the lease period. GRACE PERIOD In case of capital machinery and equipment, maximum grace period of 6(six) months may be allowed for installation / commercial production. PAYMENT DATE Rental payments shall be made every month and there shall be three payment dates as detailed below: If Lease is executed · Between 1st to 10th ..........5th of subsequent months · Between 11th to 20th......15th of subsequent months · After 20th .......................25th of subsequent months Insurance Coverage The vehicle/Equipment/Lease Asset(s) shall have to be covered by a comprehensive insurance policy throughout the whole lease term at lessee's own cost in the name of Jamuna Bank Limited. The premium shall be on account of the Lessee. Repair & Maintenance of Leased Items The lessee is obliged to maintain the vehicle/ Equipment in good working order and is solely responsible for any loss or damage as long as it is in his/her possession. Repair or and maintenance cost for taking care of normal wear and tear and keeping it in good running condition during the lease period shall be the responsibility of the lessee. Transfer Price/Lease Renewal Rental On final adjustment of the lease finance, the lessee may have an option to purchase the equipment at 5% of the lease finance. Besides the above option, the lessee may renew the lease on year to year basis or return the equipment to the Bank.