By: Aditya Sharma Fabien Rahul Doiphode Virender Singh

Extensive Literature ReviewAnalyzing and structuring the objectives properly Preparing the Research Design including Sample Design Collecting the Data Analysis of Data Generalisation and Interpretation drawn from the analysis of the data Preparation of the Report or Presentation of Results-Formal write ups of conclusions reached.
Primary data Secondary data

Primitive technique Present from generations Caters technology to a large population with minimum investment Gives opportunity to entrepreneurs with scarce financial resources Started in India through co-operatives

Phase I
Started in 1904 Became a provincial subject by 1919

Phase II
Large number of co-operatives committee setup in 1945 Supported by RBI founded by

Phase III
NABARD was established in an attempt to resolve the frozen assets concern due to heavy repayment

Phase IV
Problem of frozen assets have not been resolved Co-operatives are at a financial risk Managers need to look for alternatives Leasing can be an option against direct credit

Original financing technique for mid term and long terms Done by financial firms and manufacturers directly Leasing is more rigid than renting Avails the use of assets without purchasing them Used in leading industries like IT, health services, etc. Proactive lending

Basic terms of leasing

Contracts last from 3 years to 10 years Fixed owner, given only for temporary use Periodic payments are made to the owner Lease cannot be cancelled At the end of the lease client can purchase the equipment or property given on lease

Types of leasing
Operational leases Financial leases Hire-purchase lease

Done in many sectors Lacks in agriculture sector due to

Insufficient technology Not easily accepted by managers of co-operatives Lack of proper knowledge Lack of support from banks Lack of good government policies

Requires two major analysis

Incentives in leasing rather than monetary debt Cash flow from leasing v/s debt

Increased financing availability of the company Through leasing one can ensures rapid recovery of assets in case of insolvency of the company which is the lessee; Leasing allows splitting the risk between the leaser and the lessee; Flexibility; A number of tax benefits through costbenefit accounting.

Larger investments by companies with less financial resources the cost of capital assets is spread over the useful operating life; avoiding capital restraints; allows precise quantification of the costs of leasing over the entire duration of the contract; Helps avoiding bureaucracy Lease also preserves existing line of credit. No interest rate associated with lease payments. Insurance and warranty payments are made by leaser

Ownership over assets Fixed costs Cost of fund and liquidity Measure of residual value analisys

Role of bank
Easier conditions in giving loans to MFI Lower rate of interest Availability of loans without collaterals

Role of government
Better policies Clear terms and conditions of leasing Quick resolution in courts regarding these issues

Role of manufacturers
Enter the leasing market themselves

Primary data collection

Visiting some of the cooperatives Visiting some of the existing model like renting (ex. Kartara tractors)

Survey
Interview the banks manager, some government agencies, dealers etc. Questionnaire for the farmers and cooperatives

Experimental
Quasi design for a possible lease model