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IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
A 'Finance Lease' is a long-term arrangement. How much of the asset's economic life does it cover, and can the contract be cancelled?
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Finance Lease Characteristics
Lease Finance and Hire Purchase 49
WA 49
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
There is no separate statute for leasing in India. Under the Indian Contract Act 1872, what specific type of contract governs leasing?
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Legal Aspect of Leasing (Bailment)
Lease Finance and Hire Purchase 49
WA 49
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
Banks can undertake equipment leasing activities. Can a commercial bank set up a subsidiary exclusively for equipment leasing?
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Bank Leasing Regulations
Lease Finance and Hire Purchase 49
WA 49
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
Lease rentals can be structured in various ways to match the lessee's cash flow. What is the difference between an Up-front and a Back-end lease?
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Up-front vs Back-end Lease
Lease Finance and Hire Purchase 48
WA 48
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
Unlike a finance lease, an 'Operating Lease' is used for a shorter period. Who bears the risk of obsolescence in an operating lease?
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Operating Lease Characteristics
Lease Finance and Hire Purchase 47
WA 47
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IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
In a hire purchase transaction, an asset is hired for periodic instalment payments. When does the actual ownership of the asset transfer to the hirer?
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Hire Purchase Definition
Lease Finance and Hire Purchase 46
WA 46
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
A hire purchase transaction is a hybrid legal agreement. Which two basic elements of the Indian Contract Act and Sale of Goods Act govern it?
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Legal Aspects of Hire Purchase
Lease Finance and Hire Purchase 46
WA 46
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
In a lease agreement, the owner of an asset grants another person the right to use it for a periodic payment. What are these two parties legally called?
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Lease Finance Definition
Lease Finance and Hire Purchase 44
WA 44
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
When an asset is acquired on lease, it is not shown as a fixed asset on the lessee's balance sheet. How does this impact the firm's Debt-Equity Ratio?
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Off-Balance Sheet Financing
Lease Finance and Hire Purchase 44
WA 44
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
Tax benefits play a huge role in asset financing. Between a Lease and a Hire Purchase, who gets to claim the depreciation on the asset?
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Lease vs Hire Purchase: Depreciation
Lease Finance and Hire Purchase 44
WA 44
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IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
A company urgently needs cash but also needs to keep using its factory equipment. What lease arrangement solves this problem?
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Sale and Lease Back
Lease Finance and Hire Purchase 42
WA 42
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
What is the fundamental difference regarding the ultimate objective of the user in a Lease versus a Hire Purchase?
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Lease vs Hire Purchase: Option to Buy
Lease Finance and Hire Purchase 41
WA 41
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
Under Section 146 of the Indian Contract Act, what are the legal terms for the person delivering the goods and the person receiving them?
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Bailor and Bailee
Lease Finance and Hire Purchase 40
WA 40
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
When a bank undertakes equipment leasing departmentally, RBI enforces strict credit exposure limits. What is the limit linked to?
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Bank Departmental Leasing Limits
Lease Finance and Hire Purchase 39
WA 39
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
How does the accounting treatment of the periodic payments differ between a lease and a hire purchase?
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Lease vs Hire Purchase: Instalment Nature
Lease Finance and Hire Purchase 36
WA 36
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IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
Leasing activity was officially initiated in India in the year 1973. Which was the very first leasing company set up in the country?
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First Leasing Company in India
Lease Finance and Hire Purchase 42
WA 42
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
The hire-purchase concept originated in Britain. Which sector or product drove the rapid early development of commercial hire purchase in India?
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Evolution of Hire Purchase
Lease Finance and Hire Purchase 37
WA 37
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
Why might a highly profitable company prefer to lease equipment rather than taking a bank loan to buy it?
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Tax Benefit of Leasing
Lease Finance and Hire Purchase 36
WA 36
IE-IFS Capsule Cards PRO Lease Finance and Hire Pu…
Retailers sometimes use a specific lease structure linked to their business performance. What defines a 'Percentage Lease'?
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Percentage Lease
Lease Finance and Hire Purchase 32
WA 32
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Lease Finance and Hire Purchase — JAIIB IE-IFS Capsules

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All 19 cards on this page
Finance Lease Characteristics A 'Finance Lease' is a long-term arrangement. How much of the asset's economic life does it cover, and c… Legal Aspect of Leasing (Bailment) There is no separate statute for leasing in India. Under the Indian Contract Act 1872, what specific typ… Bank Leasing Regulations Banks can undertake equipment leasing activities. Can a commercial bank set up a subsidiary exclusively… Up-front vs Back-end Lease Lease rentals can be structured in various ways to match the lessee's cash flow. What is the difference… Operating Lease Characteristics Unlike a finance lease, an 'Operating Lease' is used for a shorter period. Who bears the risk of obsoles… Hire Purchase Definition In a hire purchase transaction, an asset is hired for periodic instalment payments. When does the actual… Legal Aspects of Hire Purchase A hire purchase transaction is a hybrid legal agreement. Which two basic elements of the Indian Contract… Lease Finance Definition In a lease agreement, the owner of an asset grants another person the right to use it for a periodic pay… Off-Balance Sheet Financing When an asset is acquired on lease, it is not shown as a fixed asset on the lessee's balance sheet. How… Lease vs Hire Purchase: Depreciation Tax benefits play a huge role in asset financing. Between a Lease and a Hire Purchase, who gets to claim… Sale and Lease Back A company urgently needs cash but also needs to keep using its factory equipment. What lease arrangement… Lease vs Hire Purchase: Option to Buy What is the fundamental difference regarding the ultimate objective of the user in a Lease versus a Hire… Bailor and Bailee Under Section 146 of the Indian Contract Act, what are the legal terms for the person delivering the goo… Bank Departmental Leasing Limits When a bank undertakes equipment leasing departmentally, RBI enforces strict credit exposure limits. Wha… Lease vs Hire Purchase: Instalment Nature How does the accounting treatment of the periodic payments differ between a lease and a hire purchase? First Leasing Company in India Leasing activity was officially initiated in India in the year 1973. Which was the very first leasing co… Evolution of Hire Purchase The hire-purchase concept originated in Britain. Which sector or product drove the rapid early developme… Tax Benefit of Leasing Why might a highly profitable company prefer to lease equipment rather than taking a bank loan to buy it? Percentage Lease Retailers sometimes use a specific lease structure linked to their business performance. What defines a…
Chapters in this paper
Micro Finance Institutions Non-Banking Financial Companies (NBFCs) Fixed Income Markets – Debt and Bond Markets Interconnectedness of Markets and Market Dynamics Merchant Banking Services Foreign Exchange Markets (IE-IFS) Factoring, Forfaiting and Trade Receivables Discounting System (TReDS) Venture Capital Lease Finance and Hire Purchase Credit Rating and Credit Scoring Pension Products Para Banking and Financial Services Provided by Banks Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) An Overview of Indian Economy Fundamentals of Economics, Microeconomics, and Macroeconomics and Types of Economies Indian Financial System – An Overview
Modules in IE-IFS
MODULE A: Indian Economic Architecture MODULE B: Economic Concepts Related to Banking MODULE C: Indian Financial Architecture MODULE D: Financial Products & Services
JAIIB papers
IE-IFS — Indian Economy & Indian Financial System PPB — Principles & Practices of Banking AFM — Accounting & Financial Management for Bankers RBWM — Retail Banking & Wealth Management
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