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Banking Term: Lease

Apr 14, 2015 17:59 IST

    It is an agreement between the owner of property (Lessor) to grant use of it to another party (lessee) for a specified period at a specified rent payable annually, quarterly, or monthly. The rental may be subject to review, say, every five years. It is possible to lease cars, office equipment, machinery, etc as well as building or land and a recent development has been the rapid growth of leasing arrangements for business requirements.

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