Indian Leasing News

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Leasing in India back with a bang! - With several new entrants looking at leasing to boost sales, improve their bottom lines and approach retail investors, benign regulatory environment and progressive growth of the economy contributing to the leasing industry becoming an eye candy again for the industry player...leasing in India is reviving.

Leasing on a high in US - MLFI 25 index - As per the ELFA, MLFI-25 monthly report, the new business volumes in US have increased by 44% in comparison to the same period last year...read more

General

Leasing back with a bang!

Leasing in India is certainly reviving, with growing economy, infrastructural developments and several new entrants into the market. From car companies to healthcare, education, IT equipments, vehicles, used vehicles and construction equipment to unconventional telecom, planes, windmills, solar panels, IRUs etc, leasing is now looked at as an aggressive funding option whether to boast up sales or to fund capex requirements.

Recently the fastest growing airlines in India reported use of sale and lease back of planes to improve their bottomline. Several new players are now seeing opportunity in adopting leasing models to cater to retail customers’ requirements.

As per research data, Indian economy is predicted to require Rs. 343.2 trillion in capital expenditure between now and 2020. India's earth moving and construction equipment (ECE) sector has exhibited a CAGR of over 18 percent over 2006 to 2010 and has the potential to grow 6 times by 2020[1] and leasing models are expected to play a big role in this growth.

All we can say is leasing is back with a bang!

[Reported by: Nidhi Bothra]

[1] EXCON, 2011, trade fair on international construction equipment and technology

Leasing volumes on a high in US – MLFI-25 reports

2 May, 2011: Monthly Leasing and Finance Index (MLFI-25) of The Equipment Leasing and Finance Association in its monthly report stated that the new business volume for March, 2011 was $6.2 billion, 44% higher compared to the same period in 2010 and 51% higher than volumes in February. This increase in leasing business is characterized by the rising demand for business equipment across various sectors and markets.

The count of equipment finance companies has been down by 2% year over year and the new application approvals increased by 77% in March compared to the same period last year, as the credit standards were relaxed.

The MLFI-25 is the only index that reflects capex, or the volume of commercial equipment financed in the U.S. The year over year comparisons of the new business volumes can be found here.

Reported by: Nidhi Bothra

Indian leasing news on Vinod Kothari site