FAQs Related to Leasing Companies

From where can I get basic/detailed information about a Leasing Company/ Investment Bank/ Housing Finance Company?

The information can be obtained from the following sources: The credit rating reports can be obtained from the websites of the credit rating companies. The following are the addresses:
1. Securities & Exchange Commission of Pakistan (SECP)
2. Published Financial Statements of the Company
3. Official web site of the company
4. Relevant Company Registration Office (CROs) in which the company is registered
5. Credit rating reports issued by the credit rating companies
6. NBFI & Modaraba Association of Pakistan
The credit rating reports can be obtained from the websites of the credit rating companies. The following are the addresses:
1. http://www.jcrvis.com.pk
2. http://www.pacra.com
From where can I get financial statements of a Leasing Company/ Investment Bank/ Housing Finance Company?
The published financial statements can be obtained from following sources:
1. Official website of the company
2. Office of the company
3. Relevant Stock Exchange (s) where the company is listed
4. NBFI & Modaraba Association of Pakistan
What is the location of CROs:?
The CROs are situated in the following cities:The complete address of the CROs can be obtained from the official web site of the Securities and Exchange Commission of Pakistan.
1. Islamabad
2. Lahore
3. Karachi
4. Quetta
5. Peshawar
6. Faisalabad
7. Multan
8. Sukkur
How I can know that the Leasing Company/ Investment Bank/ Housing Finance Company have valid permission to issue certificate of investment/deposit?
The company may be asked to show the permission granted by the Securities and Exchange Commission of Pakistan or such information can be obtained by contacting Securities and Exchange Commission of Pakistan or through its website.
Who should be contacted to check the registration status of the company?
In order to check whether a company is registered or not, the head office of the Securities and Exchange Commission of Pakistan or any of its CROs can be contacted.
What are the important laws dealing with leasing companies and from where can obtain copy of these laws?
1. Companies Ordinance, 1984
2. Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003
3. Non-Banking Finance Companies and Notified Entities Regulations, 2008
Any other SROs and circulars issued by the Securities and Exchange Commission of Pakistan regarding Leasing Company/ Investment Bank/ Housing Finance Company. All the above laws, SROs and circulars can be obtained from the official website of the Securities and Exchange Commission of Pakistan at the following web address:
http://www.secp.gov.pk/Services/laws_policies.asp
What are the important web links which can provide information about a Leasing Company/ Investment Bank/ Housing Finance Company?
1. NBFI & Modaraba Association of Pakistan - http://nbfi-modaraba.com.pk
2. Securities & Exchange Commission of Pakistan - http://www.secp.gov.pk
3. Karachi Stock Exchange - http://www.kse.com.pk
4. Lahore Stock Exchange Limited - http://www.lahorestock.com
5. Islamabad Stock Exchange Limited - http://www.ise.com.pk
Apart from above, information can be obtained about general state of economy and financial sector from the following sources:
1. State Bank of Pakistan - http://www.sbp.org.pk
2. Federal Board of Revenue - http://www.fbr.gov.pk
3. Pakistan Bureau of Statistics - http://www.pbs.gov.pk
In case of any dispute with the company, who should be contacted to launch a complaint against the company?
The complaints can be sent to any of the Company Registration Offices of the Securities and Exchange Commission of Pakistan or to the Specialized Companies Division’s Karachi and Islamabad offices.
What are the important things which should be kept in mind while taking any loan or making any deposit with the NBFC?

For Taking Loan

What are the loan application processing charges and any other charges for processing the loan application.
The borrower should at the minimum obtain the following information once the loan is approved:
1. The amount of loan,
2. date of the disbursement,
3. the date of its maturity,
4. repayment schedule i.e. the amount of installment along with its break-up (principal, mark-up, other charges i.e insurance, collection, etc)
5. the nature of the security, if any,
6. the rate of mark-up to be charged,
7. whether the mark-up is fixed or floating. In case of floating, the frequency of its revision.
8. In case of any delayed payment; the penalty applicable on late payments.
9. Prepayment penalties, if any, in case of early payment of loans
The name of the insurance company with which the asset is insured and the procedure for obtaining insurance claims.
The borrower should keep record of all the payments made to the NBFC. Once the loan is fully repaid, obtain a loan clearance certificate from the NBFC.

For Making a Deposit

A person investing in the deposit schemes shall note that the deposits raised by a NBFC are subject to various risks especially credit risk. The deposits of a NBFC are unsecured and are lower in rank to secured creditors of the NBFC. As per law, no preferential treatment is available to depositors of a NBFC in case of its liquidation.
Prior to making any deposits, the prospective depositors are advised to conduct their own risk analysis.
The depositor should at the minimum obtain the following information from the NBFC
1. The amount deposited
2. The tenure of the deposit
3. The mode of repayment of the deposit
4. The frequency of payment of profit.
5. Whether the rate of profit is fixed or subject to revision. In case it is subject to revision, the frequency of revisions
6. The terms and conditions subject to which the deposit will be renewed or rolled over.
7. In case of premature encashment, the amount of monetary penalties, if any, to be paid on early encashment or the period of time, if any, during which no profit or a different rate of profit will be payable.