HDFC offers total interest waiver for early settlement of lease

by uwin lugoda

Sri Lanka’s only public quoted government bank, HDFC Bank has been in the leasing business for the past five years, offering a range of benefits to its customers through customised leasing solutions. The Sunday Morning Business sat down with HDFC Bank Senior Manager – Leasing Devapriya Dharmaratne for an interview on what its leasing programme entails and its benefits.

When did HDFC Bank’s leasing operation start?

With the amendment of the HDFC Act in 2011, the scope of the bank’s business operations were further broadened, allowing the introduction of products such as gold and business loans along with leasing. Accordingly, the bank commenced its leasing operations in 2014.

What sets HDFC leasing apart from the rest?

The bank’s leasing solution comes with several additional benefits and features and can be obtained from the 39 fully fledged branches located islandwide. One such benefit the bank’s customers enjoy is the full and total waiver of future interest in case of a premature or early settlement of a lease facility. This allows the customer to enjoy a sizable discount in terms of the settlement amount compared to widely available leasing solutions in the market.

In addition, the bank has a competent team of mobile banking officers who provide doorstep banking services to the bank’s customers by visiting the customer’s business place, office, or residence, thereby providing superior customer service in terms of customer convenience. The bank’s leasing customers can also avail themselves to this doorstep banking solution.

Why do you utilise mobile banking officers?

This service is especially beneficial to busy customers who are not in a position to visit the bank’s branch premises for things like rental payments. These mobile banking officers are attached to the bank and operate through our branch network of 39 branches. The frequency of visits to a customer’s premises can be customised based on customer requirement, allowing daily, weekly, or other type of visit frequency, thereby catering for customer convenience at no extra charge.

These mobile banking officers are equipped with the latest Android Palm devices, allowing customers to have real-time transactions. The bank’s 39 branch offices located islandwide along with the mobile banking officers help the bank to reach customers in all corners of Sri Lanka.

For what type of vehicles do you provide lease facilities?

The bank provides leasing facilities for both registered and unregistered vehicles and covers all vehicle categories including cars, vans, lorries, buses, three-wheelers, and motorbikes.

How do you ensure safety for your customers?

The bank operates on a public-private partnership (PPP) based on its composition of 51% government ownership and 49% private ownership, providing the best of both worlds and ensuring utmost safety and efficiency for the bank’s customers.

How fast is HDFC Bank’s leasing process?

We can provide approvals for leasing facilities within one working day. We require very minimal documentation to process a lease. Further, we only request readily available documents which the customer can submit any time at his or her convenience.

How are the interest rates structured?

Our interest rates are very competitive and are structured by taking into consideration the vehicle type and year of registration of the vehicle. The rental can be customised according to the customer’s cash flow. If the customer is not in a position to pay a high rental, we can structure the rental payment schedule so that the customer is allowed to pay a lower rental initially. Further, by availing the mobile banking facility, customers can deposit money on a daily or weekly basis. The deposits made daily or weekly will go towards the lease rental payments, allowing ease of payment for the customer.

What else does HDFC Bank offer to its customers?

Our customers can take insurance for leased vehicles from any licensed insurer operating in Sri Lanka by contacting an HDFC Bank branch. Accordingly, the bank will be the only contact point required for the customer. Further, the bank can obtain insurance quotations from different insurance companies on behalf of the customer, thereby allowing the customer to select the insurer of his or her choice based on the premium. We also support customers during insurance claims by co-ordinating with the relevant insurance company.

photo saman abesiriwardana