Term Paper on Problems and Prospects of Lease Financing: a Case Study on IDLC Finance (BD) Ltd

We are entering into a new dynamic millennium of 21st century. It is very interesting to observe how organizations are involved to shape them for a new arena. Especially we know Lease Financing organizations are directly in action to increase the working range, building product, brand & corporate image of govt. organizations, NGOs & National/Multinational business organizations. It’s working as wheel for all of the mentioned sectors.
As a student of BBA with the requirement of my course I was assigned to IDLC Finance Limited, Chittagong for making term paper. I choose Leasing & Financing organization for completion of my internship program because Lease Financing activities mostly related with Financing & Banking subject & I am a student of BBA major in Finance & Banking. IDLC Finance Limited is an organization of new generation as its one step ahead from other organization not only in making profit but also to serve people in an effective way to meet organizational & social needs & demand. IDLC Finance Limited has been providing some attractive services that show their deed orientation toward leasing & financing philosophy.

After completing the practical orientation program, it was support to me to prepare a report on the Problems & Prospects of Lease Financing.
Dealing with customers always is not an easy job. Lease Financing organizations served a wide variety of customers individually & corporately with a variety of supporting needs. It takes special skills & knowledge to handle with customer successfully. As organization’s boom or bust is largely depending on customer satisfaction, a unique understanding at customers needs must be developed.

The report comprising with Introductory Chapter, Organizational Overview, Highlighting the Evolution, Activities, Performance, Problems of Lease Financing, Performance of the Lease Financing is the main part of the report. Any study has objective & on the basis of that objective the work has to complete. To accomplish, required objective have to study in particular sector related with that objective & have to follow a disciplinary way to present the study in the best level. For the fulfillment of the object different drawbacks have to face at the time of study. All such information related with my study include in the introductory chapter.

Finally the report has been completed with some recommendations related with the findings gathered from the study as lack of working environment, problem in providing services to the clients. I have tried my best to present my practical experience in the report & present in the perfect & right way.
1.0 Introduction
Term paper is a partial requirement of BBA Programe. It offers a great opportunity for any student to get some fabulous and excellent ideas about the practical field. It is also a challenging experience to prepare Research Paper which increases intellectual abilities as an efficient BBA Programe. Non Banking Financial Institutions along with banking sector have emerged as the most important player of our economy and they also offer a passionate environment for career development so it was my premier objective since the very beginning of BBA program to accomplish research in this type of financial institution. IDLC Finance Ltd. is one of the fastest growing Non Banking financial institutions in Bangladesh. So, during the research period in IDLC, gave me a fabulous prospect to get involve to the different modern approaches of today's financial institutions.

1.1 Origin of the Report
The report has been prepared as a fulfillment of the partial requirement of the term paper as authorized by Director-School of business, Premier University Chittagong.

1.2 Objectives of the Report
The report serves principally two breadths of objectives, the broad objective and the specific ones.

Broad Objective
The broad objective of this study is to find out the characteristics of the default clients of a financial institution and to describe the precautionary and recovery measures taken by it.

Specific Objectives
The specific objectives of this study are as follows:
• To understand the theoretical concept of leasing & its process.
• To illustrate the impact of defaults on the financial institutions.
• To comprehend & draw the procedural work flow of the precautionary measures of IDLC Finance Ltd.
• To determine the characteristics which have higher impact on the default volume of IDLC
• To describe the procedure of recovery of default finances undertaken at IDLC and show the result of such action.

1.3 Scope of the Report
The report only covers IDLC Finance Ltd. as the research was done there. The paper mainly concentrates on the characteristics affecting defaults, default risk minimization process and recovery process taken by IDLC.

1.4 Limitation(s)
The main limitations are described below:
• The data are collected from different sources at varied time. Thus there remains a chance of inconsistency and insufficiency.
• A nuLease Financinger of information could not be collected for the purpose of the report because of their confidential nature.


1.5 Data Sources
In order to meet each objective, data was collected from both primary and secondary resources.

1.5.1 Primary Data
Primary data for the report was collected from mainly two sources:
• The correspondence files of IDLC Finance Ltd. and
• Interviews with the employees of IDLC

1.5.2 Secondary Data
The secondary data sources were:
• Various reports of IDLC
• A nuLease Financinger of websites
• Monthly business reviews of IDLC
• Guidelines published by Bangladesh Bank


1.6 Methodology
To conduct this research following methodology was followed:

1.6.1 Sampling Plan
For the character analysis of the default clients' part, random sampling has been done from the population size of the default clients.


1.6.2 Population Definition
The total nuLease Financinger of the default clients has been considered as the population for the character analysis part of the report.

1.7 Data Analysis
The data were collected, sorted, calculated and analyzed using MS-Excel For the analysis part, scatter diagrams, bar charts and regression analysis have been utilized.
by Rifat R. Chowdhury.

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