Study on Factors affecting Supply and Demand of Leasing in Rural areas & Evolution of Leasing in India

Farms and other rural enterprises regularly need access to long haul credit expected to secure hardware because they don't have the necessary guarantee. Most assets that rural enterprises claim can't be used as guarantee: titles to land are regularly nonexistent and portable assets such as livestock and warehouse receipts are not legitimately permissible as insurance. Leasing is a financing tool that overcomes this constraint. Leasing offers several advantages over loans, both to the lessees and to the lessors. For lessees, the most significant advantage is access to a source of finance. For farms and other rural enterprises with no access to bank loans, this could be their solitary means. Notwithstanding access, leases might be more moderate than loans because up front installments are lower than bank requirements and extra guarantee is seldom required.