Offers option of paying most affordable rentals during first 6 or 12 months
A new leasing product that makes leasing a higher value vehicle more affordable at commencement has been launched by the Commercial Bank of Ceylon especially for upwardly mobile company executives and professionals.
The Bank’s new ‘Hybrid Lease’ combines the features of a ‘Super Lease’ with the option of paying only a comparatively low rental during the first six or 12 months, paying regular rentals thereafter, and a lump sum at the end of the lease.
The repayment structure of the ‘Hybrid Lease’ is designed for executives and professionals earning a minimum salary of Rs.50,000 with anticipated, periodic increments. The customer begins by paying a very low rental during a specified period and a higher instalment when his or her earnings increase.
After the first six or 12 months, a fixed monthly rental can be paid until the penultimate month of the lease. Concluding the lease, a lump sum residual will be recovered as the final month’s payment.
This product will be offered for both unregistered and registered vehicles, and for sale and lease-back leases, the Bank said.
Commenting on the launch of this new product, Commercial Bank’s Deputy General Manager Personal Banking Mrs Sandra Walgama said: “The ‘Hybrid Lease’ provides an opportunity for vehicle enthusiasts to buy the automobile they aspire to own. They will now be able to purchase a higher value vehicle at an initial lower monthly rental, thanks to the novel repayment structure.”
‘Hybrid Leases’ are expected to be most suitable for personal use vehicles from reputable brands that have a high re-sale value. Commercial vehicles too will be considered on a case by case basis, the Bank said.
As an additional service to customers with excellent repayment records, the Bank said it will offer an extension of up to two years on the lease tenure to repay the residual lump sum of the ‘Hybrid Lease’ granted to unregistered vehicles. This extension is subject to conditions, and if offered, will be treated as a fresh lease facility.
The Commercial Bank of Ceylon had previously launched an easy vehicle leasing product – ‘Super Leasing’ which allows customers to pay part of the vehicle’s value at the end of the lease period, enabling monthly instalments to be calculated for only part of the value of the vehicle. This facilitates lessees to pay a lower monthly rental than that of a regular leasing scheme, whilst being able to buy a higher value vehicle.
Commercial Bank operates a network of 256 branches and 700 ATMs in Sri Lanka and has won more than 25 international and local awards in 2016 and 2017. Earlier this year the Bank was named Sri Lanka’s Best Bank by the USA based Global Finance; was adjudged the ‘Best Domestic Bank’ and the ‘Best Digital Bank’ in Sri Lanka by Asiamoney; was recognised as the Best Bank in Sri Lanka by FinanceAsia; the Bank’s website was adjudged the best in Sri Lanka’s financial sector at the inaugural SLT Zero One Awards presented by Sri Lanka Telecom and the Bank was ranked among the Top 1000 Banks of the World for the seventh consecutive year. The Bank also won two awards from International Banker – UK, in 2017, being adjudged ‘Best Commercial Bank of the Year’ and receiving the award for ‘Best Innovation in Retail Banking.’
Commercial Bank’s overseas operations encompass Bangladesh, where the Bank operates 19 outlets, Myanmar, where it has a Representative Office in Yangon, the Maldives, where the Bank has a fully-fledged Tier I Bank with a majority stake and Italy, where the Bank operates its own money transfer service.